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Under the fact that there are multiple pollutants, non-cumulative and cumulative pollutants, generated by two adjacent asymmetric regions, which result in transboundary pollution, we proposed a dynamic transboundary pollution treatment model to study how two adjacent asymmetric regions make their pollution treatment strategies under their self-interested behaviors while the pollution of both regions are treated optimally. The optimal investment policies under non-cooperation and cooperation are obtained through theoretic analysis. It is found that only when local governments cooperate to treat transboundary pollution, the damages caused by non-cumulative pollutants to adjacent regions will be taken into their consideration. The capital stock of pollution treatment investment of each region under the non-cooperative treatment is equal to that under the cooperative treatment.

Dynamic Optimal Strategies for Multiple Pollutants in Transboundary Pollution Game between Two Asymmetric Regions