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Pollution control in a multiregional setting: a differential game with spatially distributed controls

Author

Listed:
  • Javier de Frutos

    (IMUVA, Universidad de Valladolid)

  • Guiomar Martín-Herrán

    (IMUVA, Universidad de Valladolid)

Abstract

We analyze a differential game model where pollution control is spatially distributed among a number, possibly large, of agents with predetermined spatial relationships. The analysis emphasizes the effects of the different geographical relationships among decision makers. The game has one state variable (pollution stock) distributed among one large region divided in subregions which control their own emissions of pollutants. The emissions are also represented as distributed variables. The dynamics of the state variable is defined by a parabolic PDE. We numerically characterize the feedback Nash equilibrium of a discrete-space model that still captures the spatial interactions among agents.

Suggested Citation

  • Javier de Frutos & Guiomar Martín-Herrán, 2016. "Pollution control in a multiregional setting: a differential game with spatially distributed controls," Gecomplexity Discussion Paper Series 201601, Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation", revised Jan 2016.
  • Handle: RePEc:cst:wpaper:201601
    as

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    File URL: http://www.gecomplexity-cost.eu/repec/cst/wpaper/geco_dp_1_16.pdf
    File Function: First version, 2016
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    References listed on IDEAS

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    1. repec:spr:joptap:v:173:y:2017:i:3:d:10.1007_s10957-016-1017-8 is not listed on IDEAS

    More about this item

    Keywords

    Spatially Distributed Controls; Spatial Dynamics; Parabolic Differential Equations; Differential Games; Transboundary Pollution.;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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