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A model of an interaction between a manufacturer and the state where the manufacturer produces a single product and the state controls the level of pollution is created and investigated. A local economy with a stock pollution problem that must choose between productive and environmental investments (control functions) is considered. The model is described by a nonlinear system of two differential equations with two bounded controls. The best optimal strategy is found analytically with the use of the Pontryagin Maximum Principle and Green’s Theorem.

Optimal control of pollution stock through ecological interaction of the manufacturer and the state