| Authors |
Xepapadeas, A. |
| Title |
On the optimal management of environmental stock externalities |
| Abstract |
Following a brief review of the management of environmental externalities under strategic interactions in the traditional temporal domain, results are extended to the spatiotemporal domain. Conditions for spatial open-loop and feedback Nash equilibria, along with conditions for the benchmark cooperative solution, are presented and compared. A simplified numerical example illustrates the spatial patterns emerging at a steady state under Fickian diffusion and dispersal kernels, and the inefficiency of spatially-flat emission taxes. This conceptual framework could provide new research areas. |
| Creation Date |
2022-04-20 |
| Keywords |
spatial diffusion, dispersion kernel, open-loop Nash equilibrium, feedback Nash equilibrium, cooperative solution, steady state, optimal emission tax |
| File |
PNAS.April.2022.pdf (501707 bytes) |
| File-Function |
First version |
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Copyright © 2009 [D.I.E.S.S. A.U.E.B.]. All rights reserved.
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