A cooperative stochastic differential game of transboundary industrial pollution

Automatica ◽  
2008 ◽  
Vol 44 (6) ◽  
pp. 1532-1544 ◽  
Author(s):  
David W.K. Yeung ◽  
Leon A. Petrosyan
Keyword(s):  
Differential Game ◽  
Industrial Pollution ◽  
Stochastic Differential Game

scholarly journals A Cooperative Stochastic Differential Game of Transboundary Industrial Pollution between Two Asymmetric Nations

2017 ◽  
Vol 2017 ◽  
pp. 1-10 ◽  
Author(s):  
Yongxi Yi ◽  
Rongwei Xu ◽  
Sheng Zhang
Keyword(s):  
Differential Game ◽  
Pollution Control ◽  
Industrial Pollution ◽  
Stackelberg Game ◽  
Infinite Horizon ◽  
Pollution Abatement ◽  
Transboundary Pollution ◽  
Stochastic Differential Game ◽  
Tax Rate ◽  
Consistent Solution

Considering the fact that transboundary pollution control calls for the cooperation between interested parties, this paper studies a cooperative stochastic differential game of transboundary industrial pollution between two asymmetric nations in infinite-horizon level. In this paper, we model two ways of transboundary pollution: one is an accumulative global pollutant with an uncertain evolutionary dynamic and the other is a regional nonaccumulative pollutant. In our model, firms and governments are separated entities and they play a Stackelberg game, while the governments of the two nations can cooperate in pollution reduction. We discuss the feedback Nash equilibrium strategies of governments and industrial firms, and it is found that the governments being cooperative in transboundary pollution control will set a higher pollution tax rate and make more pollution abatement effort than when they are noncooperative. Additionally, a payment distribution mechanism that supports the subgame consistent solution is proposed.

Sign in / Sign up

Export Citation Format

Share Document