2025/08/01 by Pan Chen
Economics, Econometrics and Finance · #Economic Growth and Productivity #Energy, Environment, Economic Growth #Global trade and economics
paper · doi:10.1080/00036846.2025.2534732
This article is concerned with a green production optimization problem of enterprises and obtains the optimal production strategy. A stochastic green production model is established by introducing stochastic differential equations. The carbon quota is incorporated as a control variable. We transform the problem to one kind of optimal control problems. In virtue of the convex variational technique and Ekeland variational principle, the maximum principle is established. Finally, we use this result to solve the original enterprise’s production optimization problem in the specified context. Our model and our results can have many policy implications. They can also be used by governments to price externalities and side effects, as the principle is to tax companies that issue more carbon and pollution.