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A mixed Bentham-Rawls criterion for intergenerational equity: Theory and implications

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  • Alvarez-Cuadrado, Francisco
  • Van Long, Ngo

Abstract

This paper proposes a welfare criterion that balances the need for development and the concern for the least advantaged generations, and explores its implications. This criterion, called the mixed Bentham-Rawls criterion, moderates the effect of discounting, yet permits some degree of intertemporal trade-off. It is a weighted average of two terms: (a) the sum of discounted utilities and (b) the utility level of the least advantaged generation. We derive necessary conditions to characterize growth paths that satisfy our criterion, and show that in some models with familiar dynamic specifications, an optimal path exists and displays appealing characteristics.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 58 (2009)
Issue (Month): 2 (September)
Pages: 154-168

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Handle: RePEc:eee:jeeman:v:58:y:2009:i:2:p:154-168

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Web page: http://www.elsevier.com/locate/inca/622870

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Keywords: Intergenerational equity Maximin Sustainable development;

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References

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Citations

RePEc Biblio mentions

As found on the RePEc Biblio, the curated bibliography for Economics:
  1. > Environmental and Natural Resource Economics > Climate economics > Discounting, equity, uncertainty
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Cited by:
  1. repec:ipg:wpaper:2 is not listed on IDEAS
  2. Tol, Richard S.J., 2013. "Climate policy with Bentham–Rawls preferences," Economics Letters, Elsevier, vol. 118(3), pages 424-428.
  3. Richard S.J. Tol, 2012. "Targets for Global Climate Policy: An Overview," Working Paper Series 3712, Department of Economics, University of Sussex.
  4. Charles Figuières & Hervé Guyomard & Gilles Rotillon, 2010. "Sustainable Development: Between Moral Injunctions and Natural Constraints," Sustainability, MDPI, Open Access Journal, vol. 2(11), pages 3608-3622, November.
  5. Bazhanov, Andrei, 2006. "Decreasing of Oil Extraction: Consumption behavior along transition paths," MPRA Paper 469, University Library of Munich, Germany.
  6. Charles Figuières & Ngo Van Long & Mabel Tidball, 2013. "The MBR Intertemporal Choice Criterion and Rawls' Just Savings Principle," Working Papers 13-02, LAMETA, Universtiy of Montpellier, revised Feb 2013.
  7. Alain Ayong Le Kama & Thai Ha-Huy & Cuong Le Van & Katheline Schubert, 2014. "A never-decisive and anonymous criterion for optimal growth models," Economic Theory, Springer, vol. 55(2), pages 281-306, February.
  8. Ngo Van Long & Vincent Martinet, 2012. "Combining Rights and Welfarism: A New Approach to Intertemporal Evaluation of Social Alternatives," CESifo Working Paper Series 3746, CESifo Group Munich.
  9. Thomas Michielsen, 2013. "Environmental Catastrophes under Time-Inconsistent Preferences," Working Papers 2013.55, Fondazione Eni Enrico Mattei.
  10. Robert D. Cairns, 2011. "Accounting for Sustainability: A Dissenting Opinion," Sustainability, MDPI, Open Access Journal, vol. 3(9), pages 1341-1356, August.
  11. Michielsen, T.O., 2013. "Environmental Catastrophes Under Time-inconsistent Preferences," Discussion Paper 2013-013, Tilburg University, Center for Economic Research.
  12. Charles Figuières & Mabel Tidball, 2006. "Sustainable exploitation of a natural resource: a satisfying use of Chichilnisky's criterion," Working Papers 06-03, LAMETA, Universtiy of Montpellier, revised Sep 2006.
  13. Luc Lauwers, 2012. "Intergenerational equity, efficiency, and constructibility," Economic Theory, Springer, vol. 49(2), pages 227-242, February.
  14. Martinet, Vincent, 2011. "A characterization of sustainability with indicators," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 183-197, March.
  15. Bazhanov, Andrei, 2010. "Constant-utility paths in a resource-based economy," MPRA Paper 27619, University Library of Munich, Germany, revised 20 Dec 2010.
  16. Ngo Long, 2011. "Dynamic Games in the Economics of Natural Resources: A Survey," Dynamic Games and Applications, Springer, vol. 1(1), pages 115-148, March.

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