Singular Optimal Control Model of Stock-Dependent Environmental Policies

  • K. Erdlenbruch
  • M. Tidball
Article

Abstract

In many countries, forest policies consist of a system of various regulations, taxes, and subsidies. In this article, we focus on those policies that regulate selective harvesting and study the example of Central Africa. We use a deterministic singular optimal control model of renewable resources to assess these policies with respect to a first best situation which integrates a social surplus or externality function. In particular, in contrast to earlier articles, we analyze a stock dependent tax, for which the objective function is piecewise differentiable. We use a theorem proposed by Hartl and Feichtinger to solve the mathematical problem. We show that this tax is the most flexible instrument with respect to fund collection.

Keywords

Singular optimal control environmental taxation renewable resource economics stock dependency 

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Copyright information

© Springer Science + Business Media, Inc. 2006

Authors and Affiliations

  • K. Erdlenbruch
    • 1
  • M. Tidball
    • 2
  1. 1.Cemagref, UMR G-EAU and LAMETAMontpellierFrance
  2. 2.INRA, UMR LAMETAMontpellierFrance

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