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On an environmental sustainability problem
Author(s) -
Viscolani Bruno
Publication year - 2020
Publication title -
optimal control applications and methods
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.458
H-Index - 44
eISSN - 1099-1514
pISSN - 0143-2087
DOI - 10.1002/oca.2690
Subject(s) - sustainability , computer science , state (computer science) , mathematical economics , mathematical optimization , economics , mathematics , algorithm , ecology , biology
Summary Beltratti et al proposed an environmental sustainability problem and stressed the importance of two related control problems, namely, the discounted utilitarian problem and the long‐run utility problem. From the analysis of the latter, they obtained the definition of the Green Golden Rule (GGR). We discuss the optimal steady‐state solutions of the first problem and provide new results, completing the known information on it. Then we tackle the second problem and its equivalent NLP problem of maximizing the steady‐state utility. We obtain that the solutions to the NLP problem depend on the capital accumulation features, like those of the first problem. This corrects and completes the original analysis of the GGR.