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Controlling Pollution and Environmental Absorption Capacity

In: Essays on Pollution Control in Economics and Management Science

Author

Listed:
  • Fouad Ouardighi

    (ESSEC Business School)

  • Hassan Benchekroun

    (McGill University)

  • Dieter Grass

    (Vienna University of Technology)

Abstract

This pollution accumulation model shows that the environmental absorption capacity is impacted by economic activity. The resulting optimal control problem has two interrelated 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.

Suggested Citation

  • Fouad Ouardighi & Hassan Benchekroun & Dieter Grass, 2025. "Controlling Pollution and Environmental Absorption Capacity," Lecture Notes in Operations Research, in: Fouad El Ouardighi (ed.), Essays on Pollution Control in Economics and Management Science, chapter 0, pages 3-29, Springer.
    • Handle: RePEc:spr:lnopch:978-3-031-78227-5_1
    DOI: 10.1007/978-3-031-78227-5_1
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