Consider the pollution model with linear marginal abatement cost -C'(E)=a-bE and constant marginal damage D'(S)= d. (a)

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Consider the pollution model with linear marginal abatement cost -C'(E)=a-bE and constant marginal damage D'(S)= d.

(a) Determine the steady state.

(b) Solve for the optimal feedback strategy.

(c) Derive the optimal time paths for emissions, the pollution stock, and the optimal emission tax.

(d) Draw a phase diagram.

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A Course In Environmental Economics

ISBN: 9781316866818

1st Edition

Authors: Daniel J Phaneuf, Till Requate

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Question Posted: Feb 15, 2024 08:01 AM

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Consider the pollution model with linear marginal abatement cost -C'(E)=a-bE and constant marginal damage D'(S)= d. (a)

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A Course In Environmental Economics

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