IDEAS home Printed from https://ideas.repec.org/a/hin/complx/6750805.html
   My bibliography  Save this article

A Differential Game of Transboundary Pollution Control and Ecological Compensation in a River Basin

Author

Listed:
  • Yongxi Yi
  • Zhongjun Wei
  • Chunyan Fu

Abstract

This paper investigates a Stackelberg differential game between an upstream region and a downstream region for transboundary pollution control and ecological compensation (EC) in a river basin. Among them, the downstream region as the leader chooses its abatement investment level and an ecological compensation rate to encourage upstream investing in water pollution control firstly. After then, the upstream region as the follower determines its abatement investment level to maximize welfare. FFurthermore, we take into consideration the effects of efficiency-improving and cost-reducing learning by doing which are originated from abatement investment activity of both regions simultaneously. The results show the following. (i) There is an optimal ecological compensation rate and under which a Pareto improvement result can be obtained. (ii) Carrying out EC will shift some abatement investment from the downstream region into the upstream region. (iii) The efficiency-improving and cost-reducing learning by doing derived from abatement investment activity of both regions can decrease the optimal ecological compensation rate, increase abatement investment,and improve the social welfare.

Suggested Citation

  • Yongxi Yi & Zhongjun Wei & Chunyan Fu, 2020. "A Differential Game of Transboundary Pollution Control and Ecological Compensation in a River Basin," Complexity, Hindawi, vol. 2020, pages 1-13, February.
    • Handle: RePEc:hin:complx:6750805
    DOI: 10.1155/2020/6750805
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/8503/2020/6750805.pdf
    Download Restriction: no
    File URL: http://downloads.hindawi.com/journals/8503/2020/6750805.xml
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2020/6750805?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ryle S. Perera & Kimitoshi Sato, 2023. "Ensuring Mutual Benefit in a Trans-boundary Industrial Pollution Control Problem," Computational Economics, Springer;Society for Computational Economics, vol. 62(1), pages 91-128, June.
    2. Yongxi Yi & Min Yang & Chunyan Fu, 2021. "Analysis of multiple ecological compensation strategies for transboundary pollution control in a river basin," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1579-1590, September.
    3. Jiayi Sun & Deqing Tan, 2023. "Non-cooperative Mode, Cost-Sharing Mode, or Cooperative Mode: Which is the Optimal Mode for Desertification Control?," Computational Economics, Springer;Society for Computational Economics, vol. 61(3), pages 975-1008, March.

    More about this item

    Statistics

    Access and download statistics

    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:hin:complx:6750805. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.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.