Comparatively Study Renting and Purchasing Carbon Subsidies Schemes on Portfolio and Stochastic Control Theory

Jian Wu Xiao; Ming Jun Jiang; Hong Zhai

doi:10.4028/www.scientific.net/AMR.869-870.1029

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HomeAdvanced Materials ResearchAdvanced Materials Research Vols. 869-870Comparatively Study Renting and Purchasing Carbon...

Comparatively Study Renting and Purchasing Carbon Subsidies Schemes on Portfolio and Stochastic Control Theory

Abstract:

Applying the portfolio and stochastic control theory, the paper comparatively considers tow carbon subsidies schemes: Renting and Purchasing, and focuses on the rental scheme to present a stochastic control model and obtain an analytical optimal dynamic strategy about harvesting quantity in conditions of stochastic commodity price and timber growth. Through contrasts, the conclusion shows that government will pay less under the rental scheme than under the purchasing scheme for the same negative effect on harvesting quantity.

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Periodical:

Advanced Materials Research (Volumes 869-870)

Pages:

1029-1033

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.869-870.1029

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Online since:

December 2013

Authors:

Jian Wu Xiao, Ming Jun Jiang, Hong Zhai

Keywords:

Carbon Subsidies, Optimal Forest Harvest Policy, Portfolio, Stochastic Price and Growth

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