Feedback Nash equilibria for non-linear differential games in pollution control
Abstract
Dynamic problems of pollution and resource management with stock externalities often require a differential games framework of analysis. In addition they are represented realistically by non-linear transition equations. However, feedback Nash equilibrium (FBNE) solutions, which are the desired ones in this case, are difficult to obtain in problems with non-linear-quadratic structure. We develop a method to obtain numerically non-linear FBNE for a class of such problems, with a specific example for shallow lake pollution control. We compare FBNE solutions, by considering the entire equilibrium trajectories, with optimal management and open-loop solutions, and we show that the value of the best FBNE is in general worse than the open-loop and optimal management solutions.(This abstract was borrowed from another version of this item.)
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Paper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-378255.Length:
Date of creation: 2008
Date of revision:
Publication status: Published in Journal of Economic Dynamics and Control (2008) v.32, p.1312-1331
Handle: RePEc:ner:tilbur:urn:nbn:nl:ui:12-378255
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Web page: http://www.tilburguniversity.edu/
Related research
Keywords:Other versions of this item:
- Kossioris, G. & Plexousakis, M. & Xepapadeas, A. & de Zeeuw, A. & Mäler, K.-G., 2008. "Feedback Nash equilibria for non-linear differential games in pollution control," Journal of Economic Dynamics and Control, Elsevier, vol. 32(4), pages 1312-1331, April.
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- XEPAPADEAS, Anastasios, 2009.
"Modeling Complex Systems,"
MPRA Paper
17498, University Library of Munich, Germany.
- Anastasios Xepapadeas, 2010. "Modeling complex systems," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 181-191, November.
- Xepapadeas, Anastasios, 2009. "Modelling Complex Systems," 2009 Conference, August 16-22, 2009, Beijing, China 53216, International Association of Agricultural Economists.
- Salerno, Gillian & Beard, Rodney & McDonald, Stuart, 2007. "Rent Seeking Behavior and Optimal Taxation of Pollution in Shallow Lakes," MPRA Paper 11225, University Library of Munich, Germany, revised 22 Oct 2008.
- Talat S. Genc & Georges Zaccour, 2010. "Investment Dynamics: Good News Principle," Working Papers 1006, University of Guelph, Department of Economics.
- Dockner, E.J. & Wagener, F.O.O., 2006. "Markov-Perfect Nash Equilibria in Models With a Single Capital Stock," CeNDEF Working Papers 06-07, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
- Kossioris, G. & Plexousakis, M. & Xepapadeas, A. & de Zeeuw, A., 2011.
"On the optimal taxation of common-pool resources,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 35(11), pages 1868-1879.
- Georgios Kossioris & Michael Plexousakis & Anastasios Xepapadeas & Aart de Zeeuw, 2010. "On the Optimal Taxation of Common-Pool Resources," Working Papers 2010.101, Fondazione Eni Enrico Mattei.
- George Kossioris & Michael Plexousakis & Anastasios Xepapadeas & Aart de Zeeuw, . "On the Optimal Taxation of Common-Pool Resources," DEOS Working Papers 1010, Athens University of Economics and Business.
- Athanassoglou, Stergios, 2010. "Dynamic nonpoint-source pollution control policy: Ambient transfers and uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 34(12), pages 2494-2509, December.
- Anastasios Xepapadeas, .
"The Economics of Nonpoint Source Pollution,"
DEOS Working Papers
1233, Athens University of Economics and Business.
- Anastasios Xepapadeas, 2011. "The Economics of Non-Point-Source Pollution," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 355-373, October.
- Pedro, de Mendonça, 2009. "Self-Enforcing Climate Change Treaties: A Generalized Differential Game Approach with Applications," MPRA Paper 17889, University Library of Munich, Germany.
- Anne-Sophie Crépin & Therese Lindahl, 2009. "Grazing Games: Sharing Common Property Resources with Complex Dynamics," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(1), pages 29-46, September.
- Engelbert J. Dockner & Florian O.O. Wagener, 2006. "Markov-Perfect Nash Equilibria in Models with a Single Capital Stock," Tinbergen Institute Discussion Papers 06-055/1, Tinbergen Institute.
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