Allocation problem for ecological planning

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The problem of allocating a fixed budget among several pollution-abating investments is considered. Each investment is subject to a minimum amount below which it is ineffective. If the investment is undertaken the probability of pollution emission in excess of the allowed amount is reduced. Excessive pollution is punished with a fine. A mixed integer programming problem as well as a nonlinear one are considered and illustrated through examples. For the entire collection see [Zbl 0937.00057].











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