Differential Game of Pollution Control with Overlapping Generations

Authors

  • Stefan Wrzaczek Vienna University of Technology; Vienna Institute of Demography
  • Ekaterina Shevkoplyas Saint-Petersburg State University
  • Sergey Kostyunin Saint-Petersburg State University

Abstract

We formulate an overlapping generations model on optimal emissions with continuous age-structure. We compare the non-cooperative solution to the cooperative one and obtain fundamental differences in the optimal strategies. Also including an altruistic motive does not avoid the problem of the myopic non-cooperative solution. Finally we define a time-consistent tax scheme to obtain the cooperative solution in the non-cooperative case.

Keywords:

differential game, overlapping generations, pollution, Pontryagin’s Maximum Principle, Nash equilibrium

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References

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Published

2023-01-25

How to Cite

Wrzaczek, S., Shevkoplyas, E., & Kostyunin, S. (2023). Differential Game of Pollution Control with Overlapping Generations. Contributions to Game Theory and Management, 5, 310–320. Retrieved from https://gametheory.spbu.ru/article/view/14634

Issue

Vol. 5 (2012)

Section

Articles

License

Articles of "Contributions to Game Theory and Management" are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.