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Managing spatial linkages and geographic heterogeneity in dynamic models with transboundary pollution

Author

Listed:
  • Raouf Boucekkine

    (Rennes SB - Rennes School of Business)

  • Giorgio Fabbri

    (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)

  • Salvatore Federico

    (UniGe - Università degli studi di Genova = University of Genoa = Université de Gênes)

  • Fausto Gozzi

    (LUISS - Libera Università Internazionale degli Studi Sociali Guido Carli [Roma])

Abstract

We construct a spatiotemporal frame for the study of spatial economic and ecological patterns generated by transboundary pollution. Space is continuous and polluting emissions originate in the intensity of use of the production input. Pollution flows across locations following a diffusion process. The objective functional of the economy is to set the optimal production policy over time and space to maximize welfare from consumption, taking into account a negative local pollution externality and the diffusive nature of pollution. Our framework allows for space and time dependent preferences and productivity, and does not restrict diffusion speed to be space-independent. Accordingly, we develop a methodology to investigate the environmental and economic implications of spatiotemporal heterogeneity. We propose a method for an analytical characterization of the optimal paths. An application to technological spillovers is proposed for illustration. We focus on the determination of the optimal short-term spatiotemporal dynamics induced by the resulting non-autonomous problems.

Suggested Citation

  • Raouf Boucekkine & Giorgio Fabbri & Salvatore Federico & Fausto Gozzi, 2022. "Managing spatial linkages and geographic heterogeneity in dynamic models with transboundary pollution," Post-Print hal-03463547, HAL.
    • Handle: RePEc:hal:journl:hal-03463547
    DOI: 10.1016/j.jmateco.2021.102577
    Note: View the original document on HAL open archive server: https://hal.science/hal-03463547v1
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    Cited by:

    1. Raouf Boucekkine & Giorgio Fabbri & Salvatore Federico & Fausto Gozzi & Ted Loch-Temzelides & Cristiano Ricci, 2025. "An integral transformation approach to differential games: a climate model application," LIDAM Discussion Papers IRES 2025001, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. Boucekkine, Raouf & Ruan, Weihua & Zou, Benteng, 2023. "The irreversible pollution game," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    3. Boucekkine, Raouf & Fabbri, Giorgio & Federico, Salvatore & Gozzi, Fausto, 2022. "A dynamic theory of spatial externalities," Games and Economic Behavior, Elsevier, vol. 132(C), pages 133-165.
    4. Luca Colombo & Paola Labrecciosa, 2024. "Resource Mobility and Market Performance," Dynamic Games and Applications, Springer, vol. 14(1), pages 78-96, March.
    5. Filippo de Feo & Giorgio Fabbri & Silvia Faggian & Giuseppe Freni, 2025. "Symmetric Equilibria in Spatially Distributed Extraction Games with Nonlinear Growth," Working Papers hal-05395762, HAL.

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