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.
The purpose of this paper is to consider the effects of transferable emission permit system. In the United States, it was established under the Acid Rain Program in 1990, and trading of emission allowances started in 1993. In the research of the U. S. case, we can find some factors that influence the state of the real trade, and some differences between theory and reality. This paper discusses the reason why the gap between the practice and theoretical results emerges.
There exists a rule of thumb of mines, which requires that the cut-off grade should decrease (increase) when the price of metal increases (decreases). The mining rule, however, has been considered as irrational by both resource economists and mining engineers. This work derives the conditions under which this rule has economic rationality. The mining process of development has an important role in resolving the contradiction between practice and theory. If the marginal development cost is sufficiently large, the rule has economic rationality.
This note presents a generalised Gauss-Markov Theorem on least squares estimation and making use of the theorem, argues how to identify the least squares estimators that are to be the best linear unbiased estimates.