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Controlling pollution and environmental absorption capacity

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  • Fouad Ouardighi

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  • Hassan Benchekroun
  • Dieter Grass

Abstract

This pollution accumulation model shows that the environmental absorption capacity is impacted by economic activity. The resulting optimal control problem has two inter-related state variables: the stock of pollution and the absorption capacity of the environment. The stock of pollution decreases with environmental absorption capacity and increases with the rate of current emissions, which is controlled by a production level as well as an emissions reduction effort. However, the environmental absorption capacity is positively affected by an absorption development effort, and negatively impacted by the stock of pollution. Under specific conditions, it is shown that an optimal path, which can be either monotonic or following transient oscillations, leads to a (nontrivial) saddle-point characterized by a positive environmental absorption capacity. Copyright Springer Science+Business Media, LLC 2014

Suggested Citation

  • Fouad Ouardighi & Hassan Benchekroun & Dieter Grass, 2014. "Controlling pollution and environmental absorption capacity," Annals of Operations Research, Springer, vol. 220(1), pages 111-133, September.
  • Handle: RePEc:spr:annopr:v:220:y:2014:i:1:p:111-133:10.1007/s10479-011-0982-4
    DOI: 10.1007/s10479-011-0982-4
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    2. Fouad El Ouardighi & Konstantin Kogan & Raouf Boucekkine, 2017. "Optimal recycling under heterogeneous waste sources and the environmental Kuznets curve," Working Papers hal-01693488, HAL.
    3. Fouad El Ouardighi & Konstantin Kogan & Giorgio Gnecco & Marcello Sanguineti, 2018. "Commitment-Based Equilibrium Environmental Strategies Under Time-Dependent Absorption Efficiency," Group Decision and Negotiation, Springer, vol. 27(2), pages 235-249, April.
    4. Dong Cao & Lin Wang & Shouyang Wang, 2017. "Complex Dynamics Induced by Nonlinear Pollution Absorption, Pollution Emission Rate and Effectiveness of Abatement Technology in an OLG Model," Sustainability, MDPI, Open Access Journal, vol. 9(5), pages 1-11, May.
    5. Fouad El Ouardighi & Eugene Khmelnitsky & Marc Leandri, 2020. "Production-based pollution versus deforestation: optimal policy with state-independent and-dependent environmental absorption efficiency restoration process," Annals of Operations Research, Springer, vol. 292(1), pages 1-26, September.
    6. Marc Leandri & Mabel Tidball, 2017. "Assessing the sustainability of optimal pollution paths in a world with inertia," Working Papers 2017.10, FAERE - French Association of Environmental and Resource Economists.
    7. Dmitry Gromov & Ekaterina Gromova, 2017. "On a Class of Hybrid Differential Games," Dynamic Games and Applications, Springer, vol. 7(2), pages 266-288, June.
    8. Bowon Kim & Jeong Eun Sim & Caroline Elliott, 2015. "Impacts of government and market on firm’s efforts to reduce pollution," Cogent Economics & Finance, Taylor & Francis Journals, vol. 3(1), pages 1062634-106, December.
    9. Chenavaz, Régis Y. & Dimitrov, Stanko & Figge, Frank, 2021. "When does eco-efficiency rebound or backfire? An analytical model," European Journal of Operational Research, Elsevier, vol. 290(2), pages 687-700.
    10. Fouad El Ouardighi & Konstantin Kogan & Giorgio Gnecco & Marcello Sanguineti, 2020. "Transboundary pollution control and environmental absorption efficiency management," Annals of Operations Research, Springer, vol. 287(2), pages 653-681, April.
    11. Fouad El Ouardighi & Eugene Khmelnitsky & Marc Leandri, 0. "Production-based pollution versus deforestation: optimal policy with state-independent and-dependent environmental absorption efficiency restoration process," Annals of Operations Research, Springer, vol. 0, pages 1-26.
    12. Shaofu Du & Li Hu & Li Wang, 2017. "Low-carbon supply policies and supply chain performance with carbon concerned demand," Annals of Operations Research, Springer, vol. 255(1), pages 569-590, August.

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