Optimal Control Strategy of Companies: Inheriting Period and Carbon Emission Reduction

In this paper, we develop an optimal control model of companies for the inheriting period, during which interphase banking and borrowing of allowances are allowable. By considering the emission reduction policy and the initial auction amount, we optimize the problem in two steps. The model is then c...

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Bibliographic Details
Published in:Mathematical problems in engineering 2020, Vol.2020 (2020), p.1-11
Main Authors: Liang, Jin, Huang, Wenlin
Format: Article
Language:English
Subjects:
Auctions
Borrowing
Carbon
Climate change
Compliance
Emission standards
Emissions control
Emissions trading
Energy conservation
Environmental policy
Futures
Greenhouse gases
Market prices
Optimal control
Optimization
Permits
Two dimensional models
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Summary:In this paper, we develop an optimal control model of companies for the inheriting period, during which interphase banking and borrowing of allowances are allowable. By considering the emission reduction policy and the initial auction amount, we optimize the problem in two steps. The model is then converted into a two-dimensional Hamilton–Jacobi–Bellman equation. The numerical results, analysis, and comparisons are presented. Finally, we highlight several policy implications from the perspectives of companies and governments.
ISSN:1024-123X
1563-5147
DOI:10.1155/2020/3461747