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An exercise in modelling of consumption, import and export of an exhaustible resource
Author(s) -
Sethi Suresh,
Sorger Gerhard
Publication year - 1990
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.4660110207
Subject(s) - resource (disambiguation) , consumption (sociology) , indigenous , natural resource economics , economics , resource consumption , renewable resource , renewable energy , ecology , computer science , computer network , social science , sociology , biology
In this paper we analyse a control‐theoretic model of a country possessing a finite amount of a non‐renewable resource. The country can both consume the indigenous resource and export it. Moreover, a substitute for the indigenous resource is available at a given backstop price. We obtain the optimal consumption, export and import policy for the country.