search query: @author Hartl, R. F. / total: 2
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| Author: | Hartl, R. F. |
| Title: | Optimal acquisition of pollution control equipment under uncertainty |
| Journal: | Management Science
1992 : MAY, VOL. 38:5, p. 609-622 |
| Index terms: | POLLUTION CONTROL UNCERTAINTY REGULATIONS ENVIRONMENTAL PROTECTION INVESTMENT |
| Language: | eng |
| Abstract: | A firm is considered facing pending environmental regulations implying that the firm will have to acquire a certain amount of pollution control equipment. The compliance date and the date when it is announced are not known in advance. Furthermore, the target stock of pollution control equipment is also unknown. This amounts to an optimal control problem in which the terminal time and the terminal state are random variables for which certain probability estimates can be made. Using optimal control theory the optimal investment in pollution control equipment is obtained, and the sensitivity with respect to discounting, wear-out, technological progress is investigated. |
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