Sustainable management of fossil fuels: A dynamic stochastic optimization approach with jump-diffusion
详细信息   
摘要
•We optimize stock of crude oil to be employed in R&D and consumption.•We introduce sustainability: a stock of oil is spared for future generations.•We develop a stochastic optimal control model in presence of jump diffusion.•Solution is obtained theoretically (dynamic programming) and by using simulations.•Outcome: an environmental sustainability policy is economically optimal.