A Closed-Form Solution to Stollery’s Problem with Damage in Utility

被引：0
作者：
Andrei V. Bazhanov
机构：
[1] Far Eastern Federal University,Institute of Mathematics and Computer Science
[2] Queen’s University,Department of Mathematics and Statistics
来源：
Computational Economics | 2012年 / 39卷
关键词：
Essential nonrenewable resource; Polluting economy; Sustainable development; Special function representation; Uncertainties in resource policy; O13; Q32; Q38;
D O I：
暂无
中图分类号：
学科分类号：
摘要：
Stollery (Can J Econ 31(3):730–742, 1998) studied a polluting oil-extracting economy governed by a constant utility criterion. The pollution, resulted from oil use, negatively affected production and utility. Stollery provided a closed-form solution for the case where only the production function was affected by the damage. This paper offers a closed-form solution to a non-trivial example of this economy with damage in the utility function. The solution is used for the analysis of uncertainties in resource policy caused by uncertainties in reserve estimate and in the intensity of the damage.
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页码：365 / 386
页数：21
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