Optimal Control in Space and Time and the Management of Environmental Resources

Posted: 8 Oct 2014

See all articles by William A. Brock

William A. Brock

University of Wisconsin, Madison - Department of Economics; University of Missouri at Columbia - Department of Economics

Anastasios Xepapadeas

Athens University of Economics and Business; University of Bologna - School of Economics, Management, and Statistics

A.N. Yannacopoulos

Athens University of Economics and Business

Date Written: November 2014

Abstract

We present methods and tools that can be used to study dynamic environmental resource management in a spatial setting, to explore spatially dependent regulation, and to understand pattern formation. In particular, we present the maximum principle and its use in the context of the emerging frontier of applications of optimal control of diffusive transport processes to environmental and resource economics. We show how optimal spatiotemporal control induces pattern formation and how deep uncertainty with a spatial structure can be handled with spatial robust control methods. Finally, we show how models with diffusive transport can be extended to allow for long-range effects and more general transport mechanisms.

Suggested Citation

Brock, William A. and Xepapadeas, Anastasios and Yannacopoulos, Athanasios, Optimal Control in Space and Time and the Management of Environmental Resources (November 2014). Annual Review of Resource Economics, Vol. 6, Issue 1, pp. 33-68, 2014, Available at SSRN: https://ssrn.com/abstract=2507231 or http://dx.doi.org/10.1146/annurev-resource-100913-012411

William A. Brock (Contact Author)

University of Wisconsin, Madison - Department of Economics ( email )

1180 Observatory Drive
Madison, WI 53706
United States
608-263-6655 (Phone)
608-263-3876 (Fax)

University of Missouri at Columbia - Department of Economics ( email )

118 Professional Building
Columbia, MO 65211
United States

Anastasios Xepapadeas

Athens University of Economics and Business ( email )

76 Patission Street
Athens, 104 34
Greece

University of Bologna - School of Economics, Management, and Statistics ( email )

Piazza Scaravilli 1
40126 Bologna, fc 47100
Italy

Athanasios Yannacopoulos

Athens University of Economics and Business ( email )

76 Patission Street
Athens, 104 34
Greece

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