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The Hartwick Rule: Myths and Facts Author info | Abstract | Publisher info | Download info | Related research | Statistics Asheim, Geir B.
Buchholz, Wolfgang
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We consider the Hartwick rule for capital accumulation and resource depletion, provide semantic clarifications and investigate whether this rule indicates sustainability and requires substitutability between manmade and natural capital. In addition to shedding light on the meaning of the Hartwick rule by reviewing established results, we establish the following novel finding: The value of net investments being negative does not imply that utility is unsustainable. Throughout we make the assumption of a constant technology, without which the Hartwick rule does not apply.
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number
CESifo Working Paper No. 299.
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Date of creation: 2000Date of revision:
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Keywords: Hartwick rule ; natural resources ; sustainability ; Other versions of this item:
Article Paper Asheim,G.B. & Buchholz,W., 2000.
"The Hartwick rule : myths and facts ,"
Memorandum
11/2000, Oslo University, Department of Economics.
[Downloadable!] Asheim, G.B. & Buchholz, W. & Withagen, C., 2002.
"The Hartwick rule : myths and facts ,"
Discussion Paper
52, Tilburg University, Center for Economic Research.
[Downloadable!] Find related papers by JEL classification: D90 - Microeconomics - - Intertemporal Choice and Growth - - - General Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
References listed on IDEAS 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.:
Asheim, Geir B, 1994.
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Other versions: Dasgupta, Swapan & Mitra, Tapan, 1983.
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"One-sided Unsustainability Tests and NNP Measurement with Multiple Consumption Goods ,"
Economics and Environment Network Working Papers
0208, Australian National University, Economics and Environment Network.
[Downloadable!]
Withagen, Cees & B. Asheim, Geir, 1998.
"Characterizing sustainability: The converse of Hartwick's rule ,"
Journal of Economic Dynamics and Control ,
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Dixit, Avinash & Hammond, Peter & Hoel, Michael, 1980.
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Vellinga, Nico & Withagen, Cees, 1996.
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Oxford Economic Papers ,
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Pezzey, John C V & Withagen, Cees A, 1998.
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Scandinavian Journal of Economics ,
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Cass, David & Mitra, Tapan, 1991.
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Economic Theory ,
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Weitzman, Martin L, 1976.
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The Quarterly Journal of Economics ,
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[Downloadable!] (restricted)
Other versions: Kirk Hamilton, 1995.
"Sustainable development, the Hartwick rule and optimal growth ,"
Environmental & Resource Economics ,
European Association of Environmental and Resource Economists, vol. 5(4), pages 393-411, June.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , 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.)
Hamilton, Kirk & Ruta, Giovanni & Tajibaeva, Liaila, 2005.
"Capital accumulation and resources depletion - a Hartwick rule counterfactual ,"
Policy Research Working Paper Series
3480, The World Bank.
[Downloadable!]
Other versions: Böhringer, Christoph & Jochem, Patrick, 2006.
"Measuring the immeasurable : a survey of substainability indices ,"
ZEW Discussion Papers
06-73, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
[Downloadable!]
David I. Stern & Cutler J. Cleveland, 2004.
"Energy and Economic Growth ,"
Rensselaer Working Papers in Economics
0410, Rensselaer Polytechnic Institute, Department of Economics.
[Downloadable!]
Stavins, Robert & Wagner, Alexander & Wagner, Gernot, 2002.
"Interpreting Sustainability in Economic Terms: Dynamic Efficiency Plus Intergenerational Equity ,"
Discussion Papers
dp-02-29, Resources For the Future.
[Downloadable!]
Other versions:
Stavins, Robert & Wagner, Alexander & Wagner, Gernot, 2002.
"Interpreting Sustainability in Economic Terms: Dynamic Efficiency Plus Intergenerational Equity ,"
Working Paper Series
rwp02-018, Harvard University, John F. Kennedy School of Government.
[Downloadable!] Stavins, Robert N. & Wagner, Alexander F. & Wagner, Gernot, 2003.
"Interpreting sustainability in economic terms: dynamic efficiency plus intergenerational equity ,"
Economics Letters ,
Elsevier, vol. 79(3), pages 339-343, June.
[Downloadable!] (restricted) Francisco Alvarez-Cuadrado & Ngo Van Long, 2007.
"A Mixed Bentham-Rawls Criterion For Intergenerational Equity: Theory And Implications ,"
Departmental Working Papers
2007-03, McGill University, Department of Economics.
[Downloadable!]
Other versions: BRECHET, Thierry & LAMBRECHT, StŽphane, 2006.
"Intertemporal equilibrium with a resource bequest motive ,"
CORE Discussion Papers
2006022, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
[Downloadable!]
Bazhanov, Andrei, 2008.
"Sustainable growth in a resource-based economy: the extraction-saving relationship ,"
MPRA Paper
12350, University Library of Munich, Germany.
[Downloadable!]
Mota, Rui Pedro & Domingos, Tiago & Martins, Victor, 2008.
"Analysis of green net national product and genuine saving in Portugal, 1991 - 2005 ,"
MPRA Paper
13347, University Library of Munich, Germany.
[Downloadable!]
Geir B. Asheim & Wolfgang Buchholz & John M. Hartwick & Tapan Mitra & Cees A. Withagen, 2005.
"Constant Savings Rates and Quasi-Arithmetic Population Growth under Exhaustible Resource Constraints ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!]
Other versions:
Asheim, Geir B. & Buchholz, Wolfgang & Hartwick, John M. & Mitra, Tapan & Withagen, Cees, 2005.
"Constant savings rates and quasi-arithmetic population growth under exhaustible resource constraints ,"
Memorandum
23/2005, Oslo University, Department of Economics.
[Downloadable!] 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.
[Downloadable!] (restricted) Heijnen, P., 2008.
"The Hartwick rule as a conservation law ,"
CeNDEF Working Papers
08-11, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
[Downloadable!]
Mitra, Tapan, 2007.
"On Competitive Equitable Paths under Exhaustible Resource Constraints: The Case of a Growing Population ,"
Working Papers
07-05, Cornell University, Center for Analytic Economics.
[Downloadable!]
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