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Constant Utility Paths and Irreversible Global Warming

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  • Kenneth Stollery
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    Abstract

    This paper shows that the Hartwick rule for sustainable utility with depletable resources still applies to the case of the greenhouse effect from fossil fuel carbon emissions. Although a carbon tax is necessary, for sustainable utility it is sufficient that the sum of net energy rents and carbon tax revenues is invested in reproducible capital. Examination of recent savings rates and energy cost shares suggests that this may be difficult to achieve with current global savings rates.

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    Bibliographic Info

    Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

    Volume (Year): 31 (1998)
    Issue (Month): 3 (August)
    Pages: 730-742

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    Handle: RePEc:cje:issued:v:31:y:1998:i:3:p:730-742

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