An Empirical Study for Transboundary Pollution of Three Gorges Reservoir Area with Emission Permits Trading

摘要

In this paper, we discuss a cooperative stochastic differential game for the transboundary industrial pollution problems of Three Gorges Reservoir Area. Base on the stochastic optimal control theory, we derive the Hamilton–Jacobi–Bellman equations for the cooperative games. Furthermore we solve the Hamilton–Jacobi–Bellman equations by using a fitted finite volume method. Finally, an empirical study base on the datum of Three Gorges Reservoir Area is given to demonstrate the efficiency and usefulness of the numerical method.