Meeting ID: 962 7774 9870
We study an extraction site reclamation problem in a two-player differential game setting over a finite time horizon. Environmental regulation requires each firm to engage in reclamation efforts during the entire lifespan of the extraction site and to pay an abandonment reclamation fee at the end of its lease term for any environmental damage imposed by unclaimed environmental disturbance caused by firms’ activities. Firms determine their reclamation efforts in order to minimize their reclamation cost. We analyze and compare individual firms’ choices and the environmental disturbance in the noncooperative and the cooperative cases by distinguishing between situations in which firms are homogeneous and heterogeneous.
(with Simone Marsiglio)