Title

Optimal Control And Resources

Keywords

Comparative dynamics; Dynamic envelope theorem; Necessary conditions; Optimal control theory; Phase diagram; Sufficient conditions; Transversality conditions

Abstract

Necessary and sufficient conditions from optimal control theory that are typically used when studying finite and infinite horizon natural resource economics problems are stated. In the finite horizon case, their use is demonstrated by deriving an explicit solution of a model describing the optimal cleanup of a hazardous stock. In the infinite horizon case, a qualitative characterization of the solution of a renewable resource extraction problem is achieved by employing a phase diagram. Complementary techniques, such as comparative dynamics and dynamic envelope results, are also employed to demonstrate how to extract the maximum amount of information from natural resource economics problems.

Publication Date

1-1-2013

Publication Title

Encyclopedia of Energy, Natural Resource, and Environmental Economics

Volume

2-3

Number of Pages

321-331

Document Type

Article; Book Chapter

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/B978-0-12-375067-9.00147-9

Socpus ID

85042719508 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/85042719508

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