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Constant per capita consumption paths with exhaustible resources and decaying produced capital

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  • Cheviakov, Alexei F.
  • Hartwick, John

Abstract

We introduce decay in produced capital and exogenous technical progress to the recent "Solow Model" of Asheim et al. with population growth and observe the possible collapse of the economy given too high a rate of decay. "Enough" technical progress can restore sustainable per capita consumption.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 68 (2009)
Issue (Month): 12 (October)
Pages: 2969-2973

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Handle: RePEc:eee:ecolec:v:68:y:2009:i:12:p:2969-2973

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Web page: http://www.elsevier.com/locate/ecolecon

Related research

Keywords: Exhaustible resource Intertemporal equity Population increase Technical progress and radio-active decay in produced capital;

References

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  1. Hartwick, John M, 1977. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," American Economic Review, American Economic Association, vol. 67(5), pages 972-74, December.
  2. Asheim, Geir B. & Buchholz, Wolfgang & Hartwick, John M. & Mitra, Tapan & Withagen, Cees, 2007. "Constant savings rates and quasi-arithmetic population growth under exhaustible resource constraints," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 213-229, March.
  3. Mitra, Tapan, 1983. "Limits on Population Growth under Exhaustible Resource Constraints," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(1), pages 155-68, February.
  4. Tapan Mitra, 2008. "On competitive equitable paths under exhaustible resource constraints: The case of a growing population," International Journal of Economic Theory, The International Society for Economic Theory, vol. 4(1), pages 53-76.
  5. Cairns, Robert D. & Long, Ngo Van, 2006. "Maximin: a direct approach to sustainability," Environment and Development Economics, Cambridge University Press, vol. 11(03), pages 275-300, June.
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Cited by:
  1. Louis Dupuy, 2012. "International Trade and Sustainability : A survey," Working Papers hal-00701426, HAL.
  2. repec:laf:wpaper:201201 is not listed on IDEAS

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