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Dynamics and optimal control in a spatially structured economic growth model with pollution diffusion and environmental taxation
Affiliation:1. Faculty of Mathematics, “Al.I. Cuza” University of Iaşi and “Octav Mayer” Institute of Mathematics, Iaşi, Romania;2. University of Milan, Department of Mathematics, Milan, Italy;3. University of Guelph, Department of Mathematics and Statistics, Guelph, Ontario, Canada;4. Khalifa University, Department of Applied Mathematics and Sciences, Abu Dhabi, United Arab Emirates;5. University of Milan, Department of Economics, Management, and Quantitative Methods, Milan, Italy
Abstract:In the first part of this paper we present a spatially structured dynamic economic growth model which takes into account the level of pollution and a possible taxation based on the amount of produced pollution. In the second part we analyze an optimal harvesting control problem with an objective function composed of three terms, namely the intertemporal utility of the decision maker, the space–time average of the level of pollution in the habitat, and the disutility due to the imposition of taxation.
Keywords:Reaction–diffusion systems  Integral nonlocal term  Large-time behavior  Control problems  Economic growth  Environmental quality  Taxation  Non-concave production function
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