In our model, the insurer is allowed to buy reinsurance and invest in a risk-free asset and a risky asset. The claim process is assumed to follow a Brownian motion with drift, while the price process of the risky asset is described by the constant elasticity of variance (CEV) model. The...

In 2013, Beladi et al. constructed a dynamic general equilibrium model of pollution, and characterized a steady-state equilibrium. In this paper, we extend Beladi et al.’s model to an even more general model in which the pollution abatement costs under learning by doing are taken into account....

We investigate the effect of tradable emission permits with banking on the production–inventory strategy of a firm in this paper. The basis of the work is the well-known Arrow–Karlin dynamic production–inventory model, in which the inventory holding costs are linear, and production costs...