2016（SCI）An optimal control model for reducing and trading of carbon emissions.pdfVIP

Physica A 446 (2016) 11–21 Contents lists available at ScienceDirect Physica A journal homepage: /locate/physa An optimal control model for reducing and trading of carbon emissions Huaying Guo, Jin Liang ∗ Department of Mathematics, Tongji University, Shanghai, 200092, China a r t i c l e i n f o a b s t r a c t Article history: A stochastic optimal control model of reducing and trading for carbon emissions is Received 30 April 2015 established in this paper. With considerations of reducing the carbon emission growth Available online 23 November 2015 and the price of the allowances in the market, an optimal policy is searched to have the minimum total costs to achieve the agreement of emission reduction targets. The model Keywords: turns to a two-dimension HJB equation problem. By the methods of reducing dimension Optimal control and Cole–Hopf transformation, a semi-closed form solution of the corresponding HJB HJB equation problem under some assumptions is obtained. For more general cases, the numerical Carbon trading Carbon reduction calculations, analysis and comparisons are presented. © 2015 Elsevier B.V. All rights reserved. 1. Introduction In recent years, global warming, climate change and carbon emission management have been a universal concern. In 1997, the