IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i6p2326-d333289.html
   My bibliography  Save this article

An Optimization Management Model for Countries with Mutually Competitive Regions

Author

Listed:
  • Peng Li

    (School of Mathematics and Statistics, North China University of Water Resources and Electric Power, Zhengzhou 450045, China
    School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, China)

  • Weizhou Zhong

    (School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, China
    Shaanxi Institute of Socialism, Xi’an 710061, China)

Abstract

It is difficult to manage resources allocation and pollution in a multi-regional country with mutually competitive relations. This work therefore intends to propose an optimal control model for the management problem. Through introducing the union utility function to model competitive interactions, we construct an integrated economy, resource, and environment macroeconomic model according to the social practices in the country with some competitive regions. Numerical procedures are proposed to search for the optimal energy policy and antipollution strategy of the model. As shown, an optimal fair tradeoff between efficiency and equity can be balanced for each region in the country. More important, the model verifies the importance of the role of government for management problems in a country with complex internal competitive relations

Suggested Citation

  • Peng Li & Weizhou Zhong, 2020. "An Optimization Management Model for Countries with Mutually Competitive Regions," Sustainability, MDPI, vol. 12(6), pages 1-14, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2326-:d:333289
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/6/2326/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/6/2326/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. William D. Nordhaus, 1991. "The Cost of Slowing Climate Change: a Survey," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 37-66.
    2. Aaheim, Asbjørn, 2010. "The determination of optimal climate policy," Ecological Economics, Elsevier, vol. 69(3), pages 562-568, January.
    3. Marian Leimbach & Klaus Eisenack, 2009. "A Trade Algorithm for Multi-Region Models Subject to Spillover Externalities," Computational Economics, Springer;Society for Computational Economics, vol. 33(2), pages 107-130, March.
    4. Morgane Chevé, 2000. "Irreversibility of Pollution Accumulation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(1), pages 93-104, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marc Vielle & Alain L. Bernard, 1998. "Un exemple d'utilisation : le coût de politiques de réduction des gaz à effet de serre," Économie et Prévision, Programme National Persée, vol. 136(5), pages 33-48.
    2. Robert N. Stavins, 1998. "A Methodological Investigation of the Costs of Carbon Sequestration," Journal of Applied Economics, Taylor & Francis Journals, vol. 1(2), pages 231-277, November.
    3. Hübler, Michael, 2011. "Technology diffusion under contraction and convergence: A CGE analysis of China," Energy Economics, Elsevier, vol. 33(1), pages 131-142, January.
    4. Du, Limin & Hanley, Aoife & Wei, Chu, 2015. "Estimating the Marginal Abatement Cost Curve of CO2 Emissions in China: Provincial Panel Data Analysis," Energy Economics, Elsevier, vol. 48(C), pages 217-229.
    5. Karp, Larry S. & Liu, Xuemei, 1998. "Valuing Tradeable Co2 Permits For Oecd Countries," CUDARE Working Papers 25054, University of California, Berkeley, Department of Agricultural and Resource Economics.
    6. Fankhauser, Samuel & Kverndokk, Snorre, 1996. "The global warming game -- Simulations of a CO2-reduction agreement," Resource and Energy Economics, Elsevier, vol. 18(1), pages 83-102, March.
    7. Andersson, Thomas, 1997. "The Tropical Forests as a Global Resource: Impacts of Trade-Related Policy," SSE/EFI Working Paper Series in Economics and Finance 187, Stockholm School of Economics, revised 01 Nov 1997.
    8. Minxing Jiang & Bangzhu Zhu & Julien Chevallier & Rui Xie, 2018. "Allocating provincial CO2 quotas for the Chinese national carbon program," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(3), pages 457-479, July.
    9. A. Patt, 1997. "Economists and Ecologists: Different Frames of Reference for Global Climate Change," Working Papers ir97056, International Institute for Applied Systems Analysis.
    10. Dalton, Michael G., 1997. "The Welfare Bias from Omitting Climatic Variability in Economic Studies of Global Warming," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 221-239, July.
    11. Jung, Martina, 2003. "The Role of Forestry Sinks in the CDM - Analysing the Effects of Policy Decisions on the Carbon Market," Discussion Paper Series 26293, Hamburg Institute of International Economics.
    12. Jin, Wei & Zhang, ZhongXiang, 2016. "On the mechanism of international technology diffusion for energy technological progress," Resource and Energy Economics, Elsevier, vol. 46(C), pages 39-61.
    13. Ying Fan & Xu Wang, 2014. "Which Sectors Should Be Included in the Ets in the Context of a Unified Carbon Market in China?," Energy & Environment, , vol. 25(3-4), pages 613-634, April.
    14. van Kooten, G. Cornelis & Eagle, Alison J. & Manley, James G. & Smolak, Tara M., 2004. "How Costly Are Carbon Offsets? A Meta-Analysis Of Carbon Forest Sinks," Working Papers 18166, University of Victoria, Resource Economics and Policy.
    15. van Kooten, G. Cornelis & Sohngen, Brent, 2007. "Economics of Forest Ecosystem Carbon Sinks: A Review," International Review of Environmental and Resource Economics, now publishers, vol. 1(3), pages 237-269, September.
    16. Anwar Shah & Bjorn Larsen, 2014. "Carbon taxes, the greenhouse effect, and developing countries," Annals of Economics and Finance, Society for AEF, vol. 15(1), pages 353-402, May.
    17. Vlachou, Andriana & Vassos, Spyros & Andrikopoulos, Andreas, 1996. "Energy and environment: Reducing CO2 emissions from the electric power industry," Journal of Policy Modeling, Elsevier, vol. 18(4), pages 343-376, August.
    18. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
    19. Cramton, Peter & Kerr, Suzi, 2002. "Tradeable carbon permit auctions: How and why to auction not grandfather," Energy Policy, Elsevier, vol. 30(4), pages 333-345, March.
    20. Verchère, Alban, 2011. "Le développement durable en question : analyses économiques autour d’un improbable compromis entre acceptions optimiste et pessimiste du rapport de l’Homme à la Nature," L'Actualité Economique, Société Canadienne de Science Economique, vol. 87(3), pages 337-403, septembre.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2326-:d:333289. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.