A Cooperative Stochastic Differential Game of Transboundary Industrial Pollution between Two Asymmetric Nations
Joint Authors
Xu, Rongwei
Yi, Yongxi
Zhang, Sheng
Source
Mathematical Problems in Engineering
Issue
Vol. 2017, Issue 2017 (31 Dec. 2017), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2017-04-18
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
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.
American Psychological Association (APA)
Yi, Yongxi& Xu, Rongwei& Zhang, Sheng. 2017. A Cooperative Stochastic Differential Game of Transboundary Industrial Pollution between Two Asymmetric Nations. Mathematical Problems in Engineering،Vol. 2017, no. 2017, pp.1-10.
https://search.emarefa.net/detail/BIM-1192719
Modern Language Association (MLA)
Yi, Yongxi…[et al.]. A Cooperative Stochastic Differential Game of Transboundary Industrial Pollution between Two Asymmetric Nations. Mathematical Problems in Engineering No. 2017 (2017), pp.1-10.
https://search.emarefa.net/detail/BIM-1192719
American Medical Association (AMA)
Yi, Yongxi& Xu, Rongwei& Zhang, Sheng. A Cooperative Stochastic Differential Game of Transboundary Industrial Pollution between Two Asymmetric Nations. Mathematical Problems in Engineering. 2017. Vol. 2017, no. 2017, pp.1-10.
https://search.emarefa.net/detail/BIM-1192719
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1192719