Dynamic optimal strategies in transboundary pollution game under learning by doing

In this paper, we present a transboundary pollution game, in which emission permits trading and pollution abatement costs under learning by doing are considered. In this model, the abatement cost mainly depends on the level of pollution abatement and the experience of using pollution abatement technology. We use optimal control theory to investigate the optimal emission paths and the optimal pollution abatement strategies under cooperative and noncooperative games, respectively. Additionally, the effects of parameters on the results have been examined.