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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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    2. 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.
    3. Boucekkine, Raouf & Ruan, Weihua & Zou, Benteng, 2023. "The irreversible pollution game," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    4. Jie Fan & Zhuo Shen & Zhengwen Wang, 2022. "The Threshold Effect of Urban Levels on Environmental Collaborative Governance: An Empirical Analysis from Chinese Cities," IJERPH, MDPI, vol. 19(7), pages 1-11, March.
    5. Schlosser, Rainer & Chenavaz, Régis Y. & Dimitrov, Stanko, 2021. "Circular economy: Joint dynamic pricing and recycling investments," International Journal of Production Economics, Elsevier, vol. 236(C).
    6. 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.
    7. El Ouardighi, Fouad & Kogan, Konstantin & Boucekkine, Raouf, 2017. "Optimal Recycling Under Heterogeneous Waste Sources and the Environmental Kuznets Curve," ESSEC Working Papers WP1711, ESSEC Research Center, ESSEC Business School.
    8. Fouad El Ouardighi & Hassan Benchekroun & Dieter Grass, 2016. "Self-regenerating environmental absorption efficiency and the $$\varvec{ soylent~green~scenario}$$ s o y l e n t g r e e n s c e n a r i o," Annals of Operations Research, Springer, vol. 238(1), pages 179-198, March.
    9. You He & Jinrui Zhang & Jie Feng & Guoqing Shi, 2022. "Dynamic Relationship between Green Economy and Energy Utilization Level: Evidence from China," Energies, MDPI, vol. 15(16), pages 1-14, August.
    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. 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, vol. 9(5), pages 1-11, May.
    12. Raouf Boucekkine & Fouad Ouardighi, 2016. "Optimal Growth with Polluting Waste and Recycling," Dynamic Modeling and Econometrics in Economics and Finance, in: Herbert Dawid & Karl F. Doerner & Gustav Feichtinger & Peter M. Kort & Andrea Seidl (ed.), Dynamic Perspectives on Managerial Decision Making, pages 109-126, Springer.
    13. 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.
    14. 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.
    15. Li, Shoude & Fu, Tong, 2022. "Abatement technology innovation, worker productivity and firm profitability: A dynamic analysis," Energy Economics, Elsevier, vol. 115(C).
    16. R. Boucekkine & W. Ruan & B. Zou, 2025. "Optimal firm behavior under pollution irreversibility risk, and distance to irreversibility thresholds," Annals of Operations Research, Springer, vol. 349(3), pages 1471-1500, June.
    17. Dmitry Gromov & Tadashi Shigoka & Anton Bondarev, 2024. "Optimality and sustainability of hybrid limit cycles in the pollution control problem with regime shifts," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(4), pages 10701-10718, April.
    18. Bellocchi, Alessandro & Saltari, Enrico & Travaglini, Giuseppe, 2025. "Land scarcity, sustainable uses and environmental policies," Resource and Energy Economics, Elsevier, vol. 84(C).
    19. Ouardighi, Fouad El & Sim, Jeong Eun & Kim, Bowon, 2016. "Pollution accumulation and abatement policy in a supply chain," European Journal of Operational Research, Elsevier, vol. 248(3), pages 982-996.
    20. Dmitry Gromov & Ekaterina Gromova, 2017. "On a Class of Hybrid Differential Games," Dynamic Games and Applications, Springer, vol. 7(2), pages 266-288, June.
    21. 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.
    22. Kogan, Konstantin & El Ouardighi, Fouad, 2024. "Environmental sustainability under production competition with costly adjustments: An appraisal of firms’ behavior with regard to pollution dynamics," Omega, Elsevier, vol. 129(C).
    23. 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.

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