Optimal Pollution Control
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Date
Institution
http://id.loc.gov/authorities/names/n79058482
Degree Level
Master's
Degree
Master of Science
Department
Department of Mathematical and Statistical Sciences
Specialization
Mathematical Finance
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Abstract
We consider the problem of a firm that wants to maximize its earnings. Production generates pollution as a by-product and has a negative impact on the environment. This negative impact causes disutility. The firm determines the optimal production rate and chooses between two types of technologies available. Each tech- nology generates different pollution levels and benefits from production. We model this as a mixed classical-switching stochastic control problem. By analyzing the related differential equation, we are able to obtain an explicit solution that allows us to derive interesting managerial insights.
Item Type
http://purl.org/coar/resource_type/c_46ec
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This thesis is made available by the University of Alberta Library with permission of the copyright owner solely for non-commercial purposes. This thesis, or any portion thereof, may not otherwise be copied or reproduced without the written consent of the copyright owner, except to the extent permitted by Canadian copyright law.
Language
en