A Survey of Analyses of the Transboundary Pollution Problem: Symmetric and Asymmetric Dynamic Models

概要

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The region which discharges pollution from the production processes is not necessarily coincident with the region which suffers from this pollution. This kind of problem is often called a transboundary pollution problem (TBP problem). Many articles which deal with TBP problems have been written since 1990. In this paper, we will survey these preceding articles by contrasting the symmetric two-region model with the asymmetric one, where in our model, “asymmetric two-region” means that region 1 derives less satisfaction from consuming the good but cares more about the pollution stock and the welfare of the coming generation than does region 2. In the symmetric model, the steady state of the pollution stock is always less under cooperative pollution control than in the non-cooperative case in which a Markov-perfect strategy is supposed, but the converse is possible in the asymmetric model. In the analyses of TBP model, we usually employ Hamilton-Jacobi-Bellman equation (H-J-B equation). Therefore, based on the “principle of optimality” in dynamic programming, we have established the H-J-B equation as a general formula applicable to TBP problems.
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