A closed-form solution to Stollery's problem with damage in utility (Q429541)

This paper gives an example of the closed-form solution to the Stollery problem of maximization of a constant utility negatively affected by the hazard factor [\textit{K. R. Stollery}, ``Constant utility paths and irreversible global warming'', Can. J. Econ. 31, No.~3, 730--742 (1998)]. The solution is expressed via the Lambert \(W\) special function, which has convenient analytical properties for any parameters in this problem. It is shown that the declining extraction tax eventually turns into a subsidy.