Modeling of Environmental Adaptation Versus Pollution

نویسندگان

  • Thierry BRECHET
  • Natali HRITONENKO
  • Yuri YATSENKO
چکیده

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 longterm 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.

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تاریخ انتشار 2014