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Growth, Environment and Uncertain Future Preferences

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Author Info
Alain Ayong Le Kama (Université de Lille - Université de Lille 1)
Katheline Schubert () (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - CNRS : UMR8594 - Université Panthéon-Sorbonne - Paris I)

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Abstract

The attitude of future generations towards environmental assets may well be different from ours, and it is necessary to take into account this possibility explicitly in the current debate about environmental policy. The question we are addressing here is: should uncertainty about future preferences lead to a more conservative attitude towards environment? Previous literature shows that it is the case when society expects that on average future preferences will be more in favor of environment than ours, but this result relies heavily on the assumption of a separability between consumption and environmental quality in the utility function. We show that things are less simple when preferences are non-separable: the attitude of the society now depends not only on the expectation of the change in preferences but also on the characteristics of the economy (impatience, intertemporal flexibility, natural capacities of regeneration of the environment, relative preference for the environment), on its history (initial level of the environmental quality) and on the date at which preferences are expected to change (near or far future).

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00267891_v1.

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Date of creation: May 2004
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Publication status: Published, Environmental and Resource Economics, 2004, 28, 1, 31-53
Handle: RePEc:hal:cesptp:hal-00267891_v1

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Related research
Keywords: Growth ; Environment ; Preferences ; Uncertainty c ° 2002 Kluwer Academic Publishers. Printed in the Netherlands.;

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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.:
  1. Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October. [Downloadable!] (restricted)
  2. Smulders, Sjak & Gradus, Raymond, 1996. "Pollution abatement and long-term growth," European Journal of Political Economy, Elsevier, vol. 12(3), pages 505-532, November. [Downloadable!] (restricted)
  3. Geoffrey Heal & Bengt Kriström, 2002. "Uncertainty and Climate Change," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 3-39, June. [Downloadable!] (restricted)
  4. Chichilnisky, Graciela & Belratti, Andrea & Heal, Geoffrey, 1998. "Uncertain future preferences and conservation," MPRA Paper 7912, University Library of Munich, Germany. [Downloadable!]
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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.)

  1. El Hadji Fall, 2006. "The Worst-Case Scenario and Discounting the Very Long Term," Cahiers de la Maison des Sciences Economiques v06005, Université Panthéon-Sorbonne (Paris 1). [Downloadable!]
  2. Alain Ayong Le Kama & Mouez Fodha & LAFFORGUE Gilles, 2009. "Optimal Carbon Capture and Storage policies," Working Papers 09.24.300, LERNA, University of Toulouse. [Downloadable!]
  3. Frank Krysiak, 2009. "Sustainability and its relation to efficiency under uncertainty," Economic Theory, Springer, vol. 41(2), pages 297-315, November. [Downloadable!] (restricted)
  4. El Hadji Fall, 2006. "The Worst-Case Scenario and Discounting the Very Long Term," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00084074_v1, HAL. [Downloadable!]
  5. Geoffrey Heal & Bengt Kriström, 2002. "Uncertainty and Climate Change," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 3-39, June. [Downloadable!] (restricted)
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