Renewable resource and capital with a joy-of-giving resource bequest motive
AbstractIn this article we ask whether a privately owned natural renewable resource can be conserved and managed efficiently when households have a joy-of-giving resource bequest motive. We model an overlapping generations economy in which firms have access to a CES production technology combining the natural resource, physical capital and labor. Our results shed light on the interplay between the resource bequest motive and the substitutability/complementarity relationship between capital and the natural resource in the determination of the equilibrium propensity to use the resource. The mere existence of the bequest motive does not guarantee that the resource will be conserved in the long run. When the resource is highly substitutable with capital, the equilibrium actually never exhausts the resource stock whatever the intensity of the bequest motive. When the resource is a poor substitute for capital, the equilibrium preserves the resource only if the taste for bequeathing is strong enough. Be the economy in over-accumulation or in under-accumulation of the natural resource, it always increases aggregate consumption to run the stock of capital at a level lower than the efficiency level.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Resource and Energy Economics.
Volume (Year): 33 (2011)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505569
Overlapping generations; Renewable resource; Altruism; General equilibrium;
Other versions of this item:
- BRECHET, Thierry & LAMBRECHT, Stéphane, . "Renewable resource and capital with a joy-of-giving resource bequest motive," CORE Discussion Papers RP -2434, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barro, Robert J., 1974.
"Are Government Bonds Net Wealth?,"
3451399, Harvard University Department of Economics.
- Lambrecht, Stephane & Michel, Philippe & Vidal, Jean-Pierre, 2005.
"Public pensions and growth,"
European Economic Review,
Elsevier, vol. 49(5), pages 1261-1281, July.
- Lambrecht, Stéphane & Michel, Philippe & Vidal, Jean-Pierre, 2001. "Public pensions and growth," Working Paper Series 0090, European Central Bank.
- LAMBRECHT, Stéphane & MICHEL, Philippe & VIDAL, Jean-Pierre, . "Public pensions and growth," CORE Discussion Papers RP -1820, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Stéphane Lambrecht & Philippe Michel & Emmanuel Thibault, 2006.
"Capital Accumulation and Fiscal Policy in an OLG Model with Family Altruism,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 8(3), pages 465-486, 08.
- LAMBRECHT, Stéphane & MICHEL, Philippe & THIBAULT, Emmanuel, 2005. "Capital accumulation and fiscal policy in an OLG model with family altruism," CORE Discussion Papers 2005027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- LAMBRECHT, Stéphane & MICHEL, Philippe & THIBAULT, Emmanuel, . "Capital accumulation and fiscal policy in an OLG model with family altruism," CORE Discussion Papers RP -1913, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- BRECHET, Thierry & LAMBRECHT, Stéphane, 2006.
"Family altruism with a renewable resource and population growth,"
CORE Discussion Papers
2006035, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Thierry Brechet & Stephane Lambrecht, 2009. "Family Altruism with Renewable Resource and Population Growth," Mathematical Population Studies, Taylor & Francis Journals, vol. 16(1), pages 60-78.
- BRECHET, Thierry & LAMBRECHT, Stéphane, . "Family altruism with renewable resource and population growth," CORE Discussion Papers RP -2094, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Koskela, Erkki & Ollikainen, Markku & Puhakka, Mikko, 2002. "Renewable Resources in an Overlapping Generations Economy Without Capital," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 497-517, May.
- Mourmouras, Alex, 1991. " Competitive Equilibria and Sustainable Growth in a Life-Cycle Model with Natural Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 93(4), pages 585-91.
- Markku Ollikainen, 1998. "Sustainable Forestry: Timber Bequests, Future Generations and Optimal Tax Policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(3), pages 255-273, October.
- Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
- Karl Farmer, 2000. "Intergenerational natural-capital equality in an overlapping-generations model with logistic regeneration," Journal of Economics, Springer, vol. 72(2), pages 129-152, June.
- Olson, Lars J. & Knapp, Keith C., 1997. "Exhaustible Resource Allocation in an Overlapping Generations Economy," Journal of Environmental Economics and Management, Elsevier, vol. 32(3), pages 277-292, March.
- Carlotta Balestra & Thierry Bréchet & Stéphane Lambrecht, 2012. "Property rights with biological spillovers : when Hardin meets Meade," Working Papers hal-00989828, HAL.
- Birgit Bednar-Friedl & Karl Farmer, 2013. "Time consuming resource extraction in an overlapping generations economy with capital," Journal of Economics, Springer, vol. 110(3), pages 203-224, November.
- T.V.S.Ramamohan Rao, 2011. "Contemporary Relevance and Ongoing Controversies Related to the CES Production Function," Journal of Quantitative Economics, The Indian Econometric Society, vol. 9(2), pages 36-57, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.