Keohane, Nathaniel; Van Roy, Benjamin; Zeckhauser, Richard - Kennedy School of Government, Harvard University - 2005
We characterize environmental quality as a stock, and its rate of deterioration as a flow. We consider a class of problems, which we call “SFQ” problems, in which both stocks and flows can be controlled to promote the quality of a resource stock. Abatement (curbing the flow) and restoration...