Optimal Coordination Strategy for International Production Planning and Pollution Abating under Cap-and-Trade Regulations

Because both pollution emissions and production policies often are international in scope, it is necessary to find optimal coordination strategies for international production planning and pollution abating. Differential game models are developed for multiple neighboring countries to reach optimal d...

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Bibliographic Details
Main Authors:	Baogui Xin, Wei Peng, Minghe Sun
Format:	Article
Language:	English
Published:	MDPI AG 2019-09-01
Series:	International Journal of Environmental Research and Public Health
Subjects:	optimal coordination strategy carbon emission production plan pollution abatement differential game
Online Access:	https://www.mdpi.com/1660-4601/16/18/3490

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spelling	doaj-ac1ff9eb9fcb46faa999d765d71c5a1f2020-11-25T02:07:49ZengMDPI AGInternational Journal of Environmental Research and Public Health1660-46012019-09-011618349010.3390/ijerph16183490ijerph16183490Optimal Coordination Strategy for International Production Planning and Pollution Abating under Cap-and-Trade RegulationsBaogui Xin0Wei Peng1Minghe Sun2Nonlinear Science Center, College of Economics and Management, Shandong University of Science and Technology, Qingdao 266590, ChinaNonlinear Science Center, College of Economics and Management, Shandong University of Science and Technology, Qingdao 266590, ChinaDepartment of Management Science and Statistics, College of Business, The University of Texas at San Antonio, San Antonio, TX 78249-0634, USABecause both pollution emissions and production policies often are international in scope, it is necessary to find optimal coordination strategies for international production planning and pollution abating. Differential game models are developed for multiple neighboring countries to reach optimal decisions on their production planning and pollution abating under cap-and-trade regulations. Non-cooperative and cooperative differential games are presented to depict the optimal tradeoffs between production planning and pollution abating. Hamilton-Jacobi-Bellman (HJB) equations are then employed to analyze the asymmetric and symmetric feedback solutions. Numerical simulations are used to illustrate the results. Five different dividends are also discussed. With the proposed strategies, more improvement will be directed toward production supplies and environmental issues than ever before.https://www.mdpi.com/1660-4601/16/18/3490optimal coordination strategycarbon emissionproduction planpollution abatementdifferential game
collection	DOAJ
language	English
format	Article
sources	DOAJ
author	Baogui Xin Wei Peng Minghe Sun
spellingShingle	Baogui Xin Wei Peng Minghe Sun Optimal Coordination Strategy for International Production Planning and Pollution Abating under Cap-and-Trade Regulations International Journal of Environmental Research and Public Health optimal coordination strategy carbon emission production plan pollution abatement differential game
author_facet	Baogui Xin Wei Peng Minghe Sun
author_sort	Baogui Xin
title	Optimal Coordination Strategy for International Production Planning and Pollution Abating under Cap-and-Trade Regulations
title_short	Optimal Coordination Strategy for International Production Planning and Pollution Abating under Cap-and-Trade Regulations
title_full	Optimal Coordination Strategy for International Production Planning and Pollution Abating under Cap-and-Trade Regulations
title_fullStr	Optimal Coordination Strategy for International Production Planning and Pollution Abating under Cap-and-Trade Regulations
title_full_unstemmed	Optimal Coordination Strategy for International Production Planning and Pollution Abating under Cap-and-Trade Regulations
title_sort	optimal coordination strategy for international production planning and pollution abating under cap-and-trade regulations
publisher	MDPI AG
series	International Journal of Environmental Research and Public Health
issn	1660-4601
publishDate	2019-09-01
description	Because both pollution emissions and production policies often are international in scope, it is necessary to find optimal coordination strategies for international production planning and pollution abating. Differential game models are developed for multiple neighboring countries to reach optimal decisions on their production planning and pollution abating under cap-and-trade regulations. Non-cooperative and cooperative differential games are presented to depict the optimal tradeoffs between production planning and pollution abating. Hamilton-Jacobi-Bellman (HJB) equations are then employed to analyze the asymmetric and symmetric feedback solutions. Numerical simulations are used to illustrate the results. Five different dividends are also discussed. With the proposed strategies, more improvement will be directed toward production supplies and environmental issues than ever before.
topic	optimal coordination strategy carbon emission production plan pollution abatement differential game
url	https://www.mdpi.com/1660-4601/16/18/3490
work_keys_str_mv	AT baoguixin optimalcoordinationstrategyforinternationalproductionplanningandpollutionabatingundercapandtraderegulations AT weipeng optimalcoordinationstrategyforinternationalproductionplanningandpollutionabatingundercapandtraderegulations AT minghesun optimalcoordinationstrategyforinternationalproductionplanningandpollutionabatingundercapandtraderegulations
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Optimal Coordination Strategy for International Production Planning and Pollution Abating under Cap-and-Trade Regulations

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