Optimal Investments in Clean Technology and Reforestation in the Control of Global Warming using Fuzzy Cost Function

M.A.L. Caetano, D.F.M. Gherardi, T. Yoneyama (Brazil), and J.A.M. Felippe de Souza (Portugal)

Keywords

Optimal Control, Fuzzy Control, Clean Technology, Global warming; reforestation.

Abstract

This work concerns the optimization of investment in clean technology and in reforestation to counter the global warming. The performance of the investment policy is evaluated by an objective function that reflects the political, economical and social costs by using fuzzy relations that converts objective quantitative rules into a subjective index between zero and one. The adopted dynamic model relates the environmental and economic variables such as the rate of CO2 emission, forest area and gross domestic product. The admissible control variables are assumed to be piecewise constant, as the budgets are planned for fixed time horizons. Because the optimal control problem is non-linear, a direct search method is used to yield a numerical result. In the case study here presented, the data were fitted to reflect the scenario presented by the European Union (EU) since 1960.

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