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Modeling of Environmental Adaptation versus Pollution Mitigation
Published online by Cambridge University Press: 20 June 2014
Abstract
The paper combines analytic and numeric tools to investigate a nonlinear optimal control problem relevant to the economics of climate change. The problem describes optimal investments into pollution mitigation and environmental adaptation at a macroeconomic level. The steady-state analysis of this problem focuses on the optimal ratio between adaptation and mitigation. In particular, we analytically prove that the long-term investments into adaptation are profitable only for economies above certain efficiency threshold. Numerical simulation is provided to estimate how the economic efficiency and capital deterioration affect the optimal policy.
- Type
- Research Article
- Information
- Mathematical Modelling of Natural Phenomena , Volume 9 , Issue 4: Optimal control , 2014 , pp. 227 - 237
- Copyright
- © EDP Sciences, 2014
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