A Differential Game of Ecological Compensation Criterion for Transboundary Pollution Abatement under Learning by Doing

This paper studies a stochastic differential game of transboundary pollution abatement between two kinds of ecological compensation and the abatement policy, in which the learning by doing is taken into account. Emission and pollution abatement between upstream and downstream region in the same basi...

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Main Authors: Zhigang Chen, Rongwei Xu, Yongxi Yi
Format: Article
Language:English
Published: Wiley 2020-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2020/7932845
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author Zhigang Chen
Rongwei Xu
Yongxi Yi
author_facet Zhigang Chen
Rongwei Xu
Yongxi Yi
author_sort Zhigang Chen
collection DOAJ
description This paper studies a stochastic differential game of transboundary pollution abatement between two kinds of ecological compensation and the abatement policy, in which the learning by doing is taken into account. Emission and pollution abatement between upstream and downstream region in the same basin is a Stackelberg game, and the downstream regions provide economic compensation for pollution abatement in the upstream region. We discuss the feedback Nash equilibrium strategies of proportional compensation and investment compensation, and it is found that an appropriate ecological compensation ratio can improve the investment level of pollution abatement in the two regions by accumulating experience in the process of learning by doing. In the long term, the investment compensation mechanism is an effective transboundary pollution abatement measure that can continuously reduce the water pollution stock in the upstream and downstream.
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issn 1026-0226
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language English
publishDate 2020-01-01
publisher Wiley
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series Discrete Dynamics in Nature and Society
spelling doaj-art-37fd244be1b34bb78f0e193226c04e4f2025-08-20T03:20:29ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2020-01-01202010.1155/2020/79328457932845A Differential Game of Ecological Compensation Criterion for Transboundary Pollution Abatement under Learning by DoingZhigang Chen0Rongwei Xu1Yongxi Yi2Institute of Regional and Urban-Rural Development, Wuhan University, Wuhan, ChinaInstitute of Regional and Urban-Rural Development, Wuhan University, Wuhan, ChinaSchool of Economics, Management & Law, University of South China, Hengyang, ChinaThis paper studies a stochastic differential game of transboundary pollution abatement between two kinds of ecological compensation and the abatement policy, in which the learning by doing is taken into account. Emission and pollution abatement between upstream and downstream region in the same basin is a Stackelberg game, and the downstream regions provide economic compensation for pollution abatement in the upstream region. We discuss the feedback Nash equilibrium strategies of proportional compensation and investment compensation, and it is found that an appropriate ecological compensation ratio can improve the investment level of pollution abatement in the two regions by accumulating experience in the process of learning by doing. In the long term, the investment compensation mechanism is an effective transboundary pollution abatement measure that can continuously reduce the water pollution stock in the upstream and downstream.http://dx.doi.org/10.1155/2020/7932845
spellingShingle Zhigang Chen
Rongwei Xu
Yongxi Yi
A Differential Game of Ecological Compensation Criterion for Transboundary Pollution Abatement under Learning by Doing
Discrete Dynamics in Nature and Society
title A Differential Game of Ecological Compensation Criterion for Transboundary Pollution Abatement under Learning by Doing
title_full A Differential Game of Ecological Compensation Criterion for Transboundary Pollution Abatement under Learning by Doing
title_fullStr A Differential Game of Ecological Compensation Criterion for Transboundary Pollution Abatement under Learning by Doing
title_full_unstemmed A Differential Game of Ecological Compensation Criterion for Transboundary Pollution Abatement under Learning by Doing
title_short A Differential Game of Ecological Compensation Criterion for Transboundary Pollution Abatement under Learning by Doing
title_sort differential game of ecological compensation criterion for transboundary pollution abatement under learning by doing
url http://dx.doi.org/10.1155/2020/7932845
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AT yongxiyi adifferentialgameofecologicalcompensationcriterionfortransboundarypollutionabatementunderlearningbydoing
AT zhigangchen differentialgameofecologicalcompensationcriterionfortransboundarypollutionabatementunderlearningbydoing
AT rongweixu differentialgameofecologicalcompensationcriterionfortransboundarypollutionabatementunderlearningbydoing
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