Opt-Man

Optimal Management of Dynamic Systems of the Economy and the Environment

The management of unified economic-environmental systems has attracted considerable attention from both researchers and policy makers. Climate change, the management of biodiversity, fisheries, and exhaustible resources are notable examples of the issues involved. The approach to this problem which uses dynamical systems as the main analytical tool is of special interest to economics, ecology and applied mathematics.

The purpose of the research program is to develop dynamical optimal management models for the economy and the environment. The models to be developed will incorporate issues which are on the frontier of current research, such as non-linearities and feedbacks in dynamical systems with strategic interactions; the implication of different time scales in the study and management of dynamical systems; the implications of ambiguity and ‘deep uncertainty’ in the development of policy rules; the introduction of the spatial dimension in dynamic models to study spatiotemporal evolutions and the emergence of endogenous clustering and economic agglomerations.

Particular issues to be studied include the impact of strategic behavior and oligopolistic markets on the management of natural resources and international environmental agreements in the context of nonlinear differential games; the emergence of poverty and/or environmental traps; management and policy design under ambiguity in different time scales; optimal control of infinite dimensional economic systems; the importance of long-range spatial spillovers and local diffusion in the endogenous formation of spatial patterns and agglomerations in spatiotemporal models; the design of space dependent policies.

Common links and potential unifications among the models developed for the issues described above will be explored. This unification will produce new results and open new areas for further research.

Main research teams

  • Athens University of Economics and Business
    • Anastasios Xepapadeas, Department of International and European economic Studies, Project Coordinator
    • Athanasios Yannacopoulos, Department od Statistics, Team Coordinator
    • Apostolis Philippopoulos, Department of Economics
    • George Halkos, University of Thessaly, Department of Economics.
    • Aaart de Zeeuw, University of Tilburg, Department of Economics
  • University of Crete
    • George Kossioris, Department of Mathematics, Team Coordinator
    • Michael Plexousakis, Department of Applied Mathematics
    • Michail Loulakis, National Technical University of Athens
    • Markos Katsoulakis, Department of Applied Mathematics
  • University of Macedonia
    • Eftichios Sartzetakis, Department of Economics
    • Christos Costandatos, Department of Economics
    • Chralambos Christou, Department of Economics

Research collaborators

  • Professor William Brock, University of Wisconsin–Madison, Department of Economics
  • Giannis Vardas, University of Crete, Department of Economics
  • Eftymia Kyriakopoulou, University of Gothenburg, Department of Economics
  • Georgre Papageorgiou, University of Thessaly, Department of Economics
  • Vasso Manousi, Athens University of Economics and Business, Department of International and European economic Studies

Funding

This research has been co-financed by the European Union (European Social Fund – ESF) and Greek national funds through the Operational Program "Education and Lifelong Learning" of the National Strategic Reference Framework (NSRF) - Research Funding Program: “Thalis – Athens University of Economics and Business - Optimal Management of Dynamical Systems of the Economy and the Environment: The Use of Complex Adaptive Systems”.

First Thales Research Workshop

The first workshop of the research program Optimal Management of Dynamic Systems of the Economy and the Environment will take place on Septembr 28 2012, in the Kostis Palamas building (48 Academias & Sina str). Please see the program of the workshop (in pdf format).

09:00 - 09:15Welcome
09:15 - 09:55Christos Nakos, National Technical University of Athens
A real options model for electricity capacity expansion
09:55 - 10:35Michail Loulakis, National Technical University of Athens
How do random sums of heavy-tailed variables achieve atypically large values?
10:35 - 11:15Charalambos Christou, University of Macedonia, Department of Economics
A model for dynamic competition with sticky prices
11:15 - 11:30Coffee break
11:30 - 12:10Aart de Zeeuw, University of Tilburg, Department of Economics
Assymetries in international environmental agreements
12:10 - 12:50Vasso Manoussi, Athens University of Business and Economics
Mitigation and solar radiation management in climate policies
12:50 - 13:30Eftichis Sartzetakis, University of Macedonia
The effectiveness of environmental information provision with green and brown consumers
within an evolutionary framework
13:30 - 14:15Lunch break
14:15 - 14:55George Kossioris, University of Crete, Department of Mathematics
The value function of the shallow lake control pollution problem as a viscosity solution
of a Hamilton-Jacobi-Bellman equation
14:55 - 15:35Anastasios Xepapadeas, Athens University of Economics and Business, Team coordinator
Control in infinite dimensional systems, the maximum principle and applications
in environmental economics
15:35 - 16:15Efthymia Kyriakopoulou, University of Gothenburg
Environmental policy and urban structures
16:15 - 16:30Coffee break
16:30 - 17:10Apostolis Philippopoulos, Athens University of Economics and Business
Robust decision making under externalities
17:10 - 17:50George Halkos and George Papageorgiou, University of Thessaly, Department of Economics
Some results on pulse fishing
17:50 - 18:30Discussion of future project activities

Summary of research activities

See the summary of the research activities of the THALES program "Optimal Management of Dynamical Systems of the Economy and the Environment: The Use of Complex Adaptive systems":