Pollution control for switching diffusion models: Approximation methods and numerical results

This work focuses on optimal pollution controls. The main effort is devoted to obtaining approximation methods for optimal pollution control. To take into consideration of random environment and other random factors, the control system is formulated as a controlled switching diffusion. Markov chain approximation techniques are used to design the computational schemes. Convergence of the algorithms are obtained. To demonstrate, numerical experimental results are presented. A particular feature is that computation using real data sets is provided.