Optimal environmental management in the presence of irreversibilities
成果类型：
Article
署名作者：
Scheinkman, JA; Zariphopoulou, T
署名单位：
Princeton University; University of Wisconsin System; University of Wisconsin Madison; University of Wisconsin System; University of Wisconsin Madison
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1006/jeth.1999.2607
发表日期：
2001
页码：
180-207
关键词：
摘要：
We consider an environment of a fixed size that can be converted to another use. This conversion can be made in steps, but it is irreversible. The future benefits (per unit) from the original use, and from the alternative use, follow a diffusion process. For a fairly general case, we show that the value function must be the unique (viscosity) solution to the associated Hamilton-Jacobi-Bellman equation. We also exhibit several properties of the solution for the case of constant relative risk aversion between 0 and 1, and a log-linear diffusion for the benefits. Journal of Economic Literature Classification Numbers: C61, D40, Q30. (C) 2001 Academic Press.