Optimal Demand-Driven Eco-Mechanisms Leading to Equilibrium in Competitive Economy

Abstract

We examine new mechanisms that introduce environmentally friendly ecochanges involving the elimination of noxious commodities and take into account
the structure of demand without a detrimental effect to agents’ position. In
the era of the fourth industrial revolution, these mechanisms allow eliminating
unnecessary services or goods that are being replaced by modern technologies.
We define optimal mechanisms under the criterion of distance minimization,
when a small number of detrimental commodities is excluded from production
processes as well as when producers are change-averse. The results have the
form of theorems with rigorous proofs.