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Optimal control of pollutants with delayed stock accumulation

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Abstract

We study the optimal control of a pollutant that accumulates with a delay.We find that optimal paths are, in general, non-monotonic and oscillatory, but monotonic if the objective function is additively separable. Hence, using additively separable objective functions as an approximation to a general objective function may be a misspecification. With a numerical example we illustrate that an additively separable approximation performs considerably worse in delayed compared to instantaneous stock accumulation.

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  • Ralph Winkler, 2008. "Optimal control of pollutants with delayed stock accumulation," CER-ETH Economics working paper series 08/91, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    • Handle: RePEc:eth:wpswif:08-91
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    Cited by:

    1. Augeraud-Véron, Emmanuelle & Leandri, Marc, 2014. "Optimal pollution control with distributed delays," Journal of Mathematical Economics, Elsevier, vol. 55(C), pages 24-32.
    2. Emmanuelle Augeraud-Véron & Catherine Choquet & Éloïse Comte, 2017. "Optimal Control for a Groundwater Pollution Ruled by a Convection–Diffusion–Reaction Problem," Journal of Optimization Theory and Applications, Springer, vol. 173(3), pages 941-966, June.

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    More about this item

    Keywords

    additively separable objective; approximated objective; delayed optimal control; optimal pollution control;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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