@inproceedings{eprints3130, title = {A Two-Player Differential Game Model for the Management of Transboundary Pollution and Environmental Absorption}, author = {Giorgio Gnecco and F. El Ouardighi and K. Kogan and Marcello Sanguineti}, booktitle = {Book of abstracts of the 45th Conference of Italian Operational Research Society (AIRO)}, pages = {306--307}, year = {2015}, url = {http://eprints.imtlucca.it/3130/}, abstract = {It is likely that the decentralized structure at the level of nations of decision-making processes related to polluting emissions will aggravate the decline in the efficiency of carbon sinks. A two-player differential game model of pollution is proposed. It accounts for a time-dependent environmental absorption efficiency and allows for the possibility of a switching of the biosphere from a carbon sink to a source. The impact of negative externalities from the transboundary pollution non-cooperative game wherein countries are dynamically involved is investigated. The differences in steady state between cooperative, open-loop, and Markov perfect Nash equilibria are studied. For the latter, two numerical methods for its approximation are compared.} }