TY - JOUR
T1 - An extension of the AntociDeiGaleotti evolutionary model for environment protection through financial instruments
AU - Bischi, Gian-Italo
AU - Radi, Davide
PY - 2012
Y1 - 2012
N2 - This work moves from a recent paper by Antoci et al. (2009) [1] where a dynamic model is proposed to describe an innovative method for improving environmental quality based on the exchange of financial activities, promoted by a Public Administration, between firms and tourists in a given region. We extend their analysis in two directions: we first perform a global analysis of the basins of attraction to check the stability extents of the coexisting stable attractors of the model, and we show that some undesirable and sub-optimal stable equilibria always exist, whose basins may be quite intermingled with those of the optimal equilibrium; then we introduce a structural change of the model by assuming that the Public Administration, besides its action as an intermediary between visitors and polluting firms, also performs a direct action for the pollution control. We show how the cost of this direct action of the Public Administration can be balanced by proper taxes and we prove that undesired equilibria can be ruled out by a suitable balance of financial instruments and direct actions of Public Administration for environmental remediation. © 2011 Elsevier Ltd. All rights reserved.
AB - This work moves from a recent paper by Antoci et al. (2009) [1] where a dynamic model is proposed to describe an innovative method for improving environmental quality based on the exchange of financial activities, promoted by a Public Administration, between firms and tourists in a given region. We extend their analysis in two directions: we first perform a global analysis of the basins of attraction to check the stability extents of the coexisting stable attractors of the model, and we show that some undesirable and sub-optimal stable equilibria always exist, whose basins may be quite intermingled with those of the optimal equilibrium; then we introduce a structural change of the model by assuming that the Public Administration, besides its action as an intermediary between visitors and polluting firms, also performs a direct action for the pollution control. We show how the cost of this direct action of the Public Administration can be balanced by proper taxes and we prove that undesired equilibria can be ruled out by a suitable balance of financial instruments and direct actions of Public Administration for environmental remediation. © 2011 Elsevier Ltd. All rights reserved.
KW - Basins of attraction
KW - Environmental economics
KW - Replicator equations
KW - Multistability
KW - Evolutionary dynamics
KW - Basins of attraction
KW - Environmental economics
KW - Replicator equations
KW - Multistability
KW - Evolutionary dynamics
UR - http://hdl.handle.net/10807/238064
U2 - 10.1016/j.nonrwa.2011.07.046
DO - 10.1016/j.nonrwa.2011.07.046
M3 - Article
SN - 1468-1218
VL - 13
SP - 432
EP - 440
JO - Nonlinear Analysis: Real World Applications
JF - Nonlinear Analysis: Real World Applications
ER -