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The Influence of Clean Up Capital Subsidies in Environmental Optimal Control Models with Complex Dynamics

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  • Christophe Deissenberg

    () (University of Aix-Marseille II)

  • Laurent Cellarier

    () (University of Nantes and USC)

Abstract

This paper investigates the influence of clean-up subsidies on the dynamics of models of production-environment interaction in continuous time. We show that complex dynamics can arise in the cases of socially optimal and decentralised solutions. Thus, it is possible that pollution can increase faster locally in a society that values a cleaner environment than it does in one less ecologically oriented.

Suggested Citation

  • Christophe Deissenberg & Laurent Cellarier, 1999. "The Influence of Clean Up Capital Subsidies in Environmental Optimal Control Models with Complex Dynamics," Computing in Economics and Finance 1999 323, Society for Computational Economics.
  • Handle: RePEc:sce:scecf9:323
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