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 inMathematical problems in engineering Vol. 2020; no. 2020; pp. 1 - 11
Main Authors Liang, Jin, Huang, Wenlin
Format Journal Article
LanguageEnglish
Published Cairo, Egypt Hindawi Publishing Corporation 2020
Hindawi
Hindawi Limited
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
United States > US
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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