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An Optimization Management Model for Countries with Mutually Competitive Regions

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  • 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
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    References listed on IDEAS

    as
    1. 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.
    2. Aaheim, Asbjørn, 2010. "The determination of optimal climate policy," Ecological Economics, Elsevier, vol. 69(3), pages 562-568, January.
    3. repec:aen:journl:1991v12-01-a04 is not listed on IDEAS
    4. 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.
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