A closed-form solution to Stollery's problem with damage in utility (Q429541)
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scientific article; zbMATH DE number 6048101
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | A closed-form solution to Stollery's problem with damage in utility |
scientific article; zbMATH DE number 6048101 |
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A closed-form solution to Stollery's problem with damage in utility (English)
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19 June 2012
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This paper gives an example of the closed-form solution to the Stollery problem of maximization of a constant utility negatively affected by the hazard factor [\textit{K. R. Stollery}, ``Constant utility paths and irreversible global warming'', Can. J. Econ. 31, No.~3, 730--742 (1998)]. The solution is expressed via the Lambert \(W\) special function, which has convenient analytical properties for any parameters in this problem. It is shown that the declining extraction tax eventually turns into a subsidy.
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essential nonrenewable resource
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polluting economy
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sustainable development
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special function representation
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uncertainties in resources policy
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0.6562731266021729
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