A Differential Game of Transboundary Pollution Control and Ecological Compensation in a River Basin

This paper investigates a Stackelberg differential game between an upstream region and a downstream region for transboundary pollution control and ecological compensation (EC) in a river basin. Among them, the downstream region as the leader chooses its abatement investment level and an ecological c...

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Main Authors: Yongxi Yi, Zhongjun Wei, Chunyan Fu
Format: Article
Language:English
Published: Wiley 2020-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2020/6750805
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author Yongxi Yi
Zhongjun Wei
Chunyan Fu
author_facet Yongxi Yi
Zhongjun Wei
Chunyan Fu
author_sort Yongxi Yi
collection DOAJ
description This paper investigates a Stackelberg differential game between an upstream region and a downstream region for transboundary pollution control and ecological compensation (EC) in a river basin. Among them, the downstream region as the leader chooses its abatement investment level and an ecological compensation rate to encourage upstream investing in water pollution control firstly. After then, the upstream region as the follower determines its abatement investment level to maximize welfare. FFurthermore, we take into consideration the effects of efficiency-improving and cost-reducing learning by doing which are originated from abatement investment activity of both regions simultaneously. The results show the following. (i) There is an optimal ecological compensation rate and under which a Pareto improvement result can be obtained. (ii) Carrying out EC will shift some abatement investment from the downstream region into the upstream region. (iii) The efficiency-improving and cost-reducing learning by doing derived from abatement investment activity of both regions can decrease the optimal ecological compensation rate, increase abatement investment,and improve the social welfare.
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institution Kabale University
issn 1076-2787
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language English
publishDate 2020-01-01
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series Complexity
spelling doaj-art-dbea3dd3e438484985233a24f57b171a2025-02-03T01:20:27ZengWileyComplexity1076-27871099-05262020-01-01202010.1155/2020/67508056750805A Differential Game of Transboundary Pollution Control and Ecological Compensation in a River BasinYongxi Yi0Zhongjun Wei1Chunyan Fu2School of Economics Management and Law, University of South China, Hengyang, ChinaSchool of Economics Management and Law, University of South China, Hengyang, ChinaSchool of Economics Management and Law, University of South China, Hengyang, ChinaThis paper investigates a Stackelberg differential game between an upstream region and a downstream region for transboundary pollution control and ecological compensation (EC) in a river basin. Among them, the downstream region as the leader chooses its abatement investment level and an ecological compensation rate to encourage upstream investing in water pollution control firstly. After then, the upstream region as the follower determines its abatement investment level to maximize welfare. FFurthermore, we take into consideration the effects of efficiency-improving and cost-reducing learning by doing which are originated from abatement investment activity of both regions simultaneously. The results show the following. (i) There is an optimal ecological compensation rate and under which a Pareto improvement result can be obtained. (ii) Carrying out EC will shift some abatement investment from the downstream region into the upstream region. (iii) The efficiency-improving and cost-reducing learning by doing derived from abatement investment activity of both regions can decrease the optimal ecological compensation rate, increase abatement investment,and improve the social welfare.http://dx.doi.org/10.1155/2020/6750805
spellingShingle Yongxi Yi
Zhongjun Wei
Chunyan Fu
A Differential Game of Transboundary Pollution Control and Ecological Compensation in a River Basin
Complexity
title A Differential Game of Transboundary Pollution Control and Ecological Compensation in a River Basin
title_full A Differential Game of Transboundary Pollution Control and Ecological Compensation in a River Basin
title_fullStr A Differential Game of Transboundary Pollution Control and Ecological Compensation in a River Basin
title_full_unstemmed A Differential Game of Transboundary Pollution Control and Ecological Compensation in a River Basin
title_short A Differential Game of Transboundary Pollution Control and Ecological Compensation in a River Basin
title_sort differential game of transboundary pollution control and ecological compensation in a river basin
url http://dx.doi.org/10.1155/2020/6750805
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AT zhongjunwei differentialgameoftransboundarypollutioncontrolandecologicalcompensationinariverbasin
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