Abstract:
We consider a regional economic growth model described by a system of nonlinear differential equations and pose a problem of finding an optimal control for maximizing the wealth of the region. The problem is analyzed by means of the Pontryagin maximum principle. A numerical solution for a specific region is found, and the results are compared with the basic scenario data of the integrated assessment model MERGE.
Keywords:integrated assessment model for evaluating greenhouse gas reduction policies, optimal control, Pontryagin maximum principle.