The Optimal Extraction Path of Exhaustible Resources under Environment Control

Assuming in the perfectly competitive market, using the optimal control theory and making the social welfare as the maximization target, the paper studies on environment control which impacts the optimal extraction path of exhaustible resource. The special case result shows that: reserve and the changes of environment capacity function and curve are influenced by original reserve, discounted value, the absolute ratio of green environment flow to resource extraction quantity, and marginal cost.