Dynamic models of the firm with green energy and goodwill

H. Dawid, R.F. Hartl, Peter Kort

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review

Abstract

This paper considers the effect of investment in solar panels on optimal dynamic firm behavior. To do so, an optimal control model is analyzed that has as state variables goodwill and green capital stock. Following current practice in companies like Tesla and Google, we take into account that the use of green energy has positive goodwill effects. As a solution, we find an optimal trajectory that overshoots before reaching a stable steady state.
Original languageEnglish
Title of host publicationControl Systems and Mathematical Methods in Economics
Subtitle of host publicationEssays in Honor of Vladimir M. Veliov
EditorsG. Feichtinger, R.M. Kovacevic, G. Tragler
Place of PublicationCham
PublisherSpringer
Pages279-296
Volume687
Publication statusPublished - 2018

Publication series

NameLecture Notes in Economics and Mathematical Systems
Volume687

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Dawid, H., Hartl, R. F., & Kort, P. (2018). Dynamic models of the firm with green energy and goodwill. In G. Feichtinger, R. M. Kovacevic, & G. Tragler (Eds.), Control Systems and Mathematical Methods in Economics: Essays in Honor of Vladimir M. Veliov (Vol. 687, pp. 279-296). (Lecture Notes in Economics and Mathematical Systems ; Vol. 687). Cham: Springer.