부산대학교 도서관

In this paper we study the optimal environmental policy of the firm for different scenarios dependent on (costs of) production technologies, financing costs, and governmental policy. The governmental instruments to be considered are: -investment grants on cleaner production technologies and on abatement activities; -taxes imposed on environmental pollution. The problem is defined as an optimal control model. In this model, the firm influences its pollution output through the choice of its production technology. Available are a more capital-extensive and dirty activity, a more capital-intensive and clean activity, and an abatement activity that eliminates pollution completely or partially.