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Journal Articles Journal of Optimization Theory and Applications Year : 2014

Sustainable growth under physical constraints: optimal R&D, investment and replacement policies

Abstract

We consider the optimal control of nonlinear integral equations with endogenous delay and state constraints, which describe a developing economy subjected to resource constraints. The economy invests in new resource-efficient technologies, invests in new capital, and scraps obsolete capital. We derive the optimality condition and determine long-term asymptotically exponential trajectories that optimally combine scrapping the dirtiest capital and developing new clean technologies. Next, we study the short-term dynamics of the model and show that it leads to a sustainable growth with active resource constraint.
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Dates and versions

hal-01474434 , version 1 (22-02-2017)

Identifiers

  • HAL Id : hal-01474434 , version 1

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Raouf Boucekkine, Natali Hritonenko, Yuri Yatsenko. Sustainable growth under physical constraints: optimal R&D, investment and replacement policies. Journal of Optimization Theory and Applications, 2014, 163 (1), pp.301--331. ⟨hal-01474434⟩
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