Volume 52, pp. 100-112, 2020.

An empirical study of transboundary air pollution of the Beijing-Tianjin region

Zuliang Lu, Fei Huang, Lin Li, Xiaoxiao Zuo, and Junhong Li


In this paper, we present a stochastic differential game to model the transboundary air pollution problems of the Beijing-Tianjin region with emission permits trading. By using stochastic optimal control theory, we obtain the Hamilton-Jacobi-Bellman equation satisfied by the value function for the cooperative games. Next, we solve the Hamilton-Jacobi-Bellman equation by using a fitted finite volume method. Finally, the efficiency and the usefulness of the fitted finite volume method are illustrated by an empirical study.

Full Text (PDF) [327 KB], BibTeX

Key words

transboundary air pollution of the Beijing-Tianjin region, stochastic differential game, emission permits trading, Hamilton-Jacobi-Bellman equation, fitted finite volume method

AMS subject classifications

49J20, 65N30

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