Volume 10, Issue 3
Fitted Finite Volume Method of Three Transboundary Pollution in Three Gorges Reservoir Area of Chongqing City with Emission Permits Trading by Cooperative Stochastic Differential Game

Adv. Appl. Math. Mech., 10 (2018), pp. 690-709.

Published online: 2018-10

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• Abstract

In this paper, we present a stochastic differential game to model the three transboundary industrial pollution problems in Three Gorges Reservoir Area of Chongqing City with emission permits trading. The process of emission permits price is assumed to be stochastic and to follow a geometric Brownian motion. We make use of stochastic optimal control theory to derive the system of Hamilton-Jacobi-Bellman equations satisfied by the value functions for the cooperative games, and then propose a fitted finite volume method to solve it. The efficiency and the usefulness of this method are illustrated by an empirical study for Wanzhou District, Kaizhou District, and Yunyang County in  Chongqing City.

• Keywords

Three transboundary pollution in Three Gorges Reservoir Area of Chongqing City, stochastic differential game, emission permits trading, Hamilton-Jacobi-Bellman equation, fitted finite volume method.

49J20, 65N30

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@Article{AAMM-10-690, author = {Zuliang and Lu and and 19213 and and Zuliang Lu and Shuhua and Zhang and and 19214 and and Shuhua Zhang and Lin and Li and and 19215 and and Lin Li and Longzhou and Cao and and 19216 and and Longzhou Cao and Yin and Yang and and 19217 and and Yin Yang}, title = {Fitted Finite Volume Method of Three Transboundary Pollution in Three Gorges Reservoir Area of Chongqing City with Emission Permits Trading by Cooperative Stochastic Differential Game}, journal = {Advances in Applied Mathematics and Mechanics}, year = {2018}, volume = {10}, number = {3}, pages = {690--709}, abstract = {

In this paper, we present a stochastic differential game to model the three transboundary industrial pollution problems in Three Gorges Reservoir Area of Chongqing City with emission permits trading. The process of emission permits price is assumed to be stochastic and to follow a geometric Brownian motion. We make use of stochastic optimal control theory to derive the system of Hamilton-Jacobi-Bellman equations satisfied by the value functions for the cooperative games, and then propose a fitted finite volume method to solve it. The efficiency and the usefulness of this method are illustrated by an empirical study for Wanzhou District, Kaizhou District, and Yunyang County in  Chongqing City.

}, issn = {2075-1354}, doi = {https://doi.org/10.4208/aamm.OA-2017-0082}, url = {http://global-sci.org/intro/article_detail/aamm/12231.html} }
TY - JOUR T1 - Fitted Finite Volume Method of Three Transboundary Pollution in Three Gorges Reservoir Area of Chongqing City with Emission Permits Trading by Cooperative Stochastic Differential Game AU - Lu , Zuliang AU - Zhang , Shuhua AU - Li , Lin AU - Cao , Longzhou AU - Yang , Yin JO - Advances in Applied Mathematics and Mechanics VL - 3 SP - 690 EP - 709 PY - 2018 DA - 2018/10 SN - 10 DO - http://doi.org/10.4208/aamm.OA-2017-0082 UR - https://global-sci.org/intro/article_detail/aamm/12231.html KW - Three transboundary pollution in Three Gorges Reservoir Area of Chongqing City, stochastic differential game, emission permits trading, Hamilton-Jacobi-Bellman equation, fitted finite volume method. AB -

In this paper, we present a stochastic differential game to model the three transboundary industrial pollution problems in Three Gorges Reservoir Area of Chongqing City with emission permits trading. The process of emission permits price is assumed to be stochastic and to follow a geometric Brownian motion. We make use of stochastic optimal control theory to derive the system of Hamilton-Jacobi-Bellman equations satisfied by the value functions for the cooperative games, and then propose a fitted finite volume method to solve it. The efficiency and the usefulness of this method are illustrated by an empirical study for Wanzhou District, Kaizhou District, and Yunyang County in  Chongqing City.

Zuliang Lu, Shuhua Zhang, Lin Li, Longzhou Cao & Yin Yang. (2020). Fitted Finite Volume Method of Three Transboundary Pollution in Three Gorges Reservoir Area of Chongqing City with Emission Permits Trading by Cooperative Stochastic Differential Game. Advances in Applied Mathematics and Mechanics. 10 (3). 690-709. doi:10.4208/aamm.OA-2017-0082
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