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Sustainable recursive social welfare functions

Author

Listed:
  • Asheim, Geir B.

    (Dept. of Economics, University of Oslo)

  • Mitra, Tapan

    (Department of Economics, Cornell University)

  • Tungodden, Bertil

    (Department of Economics, Norwegian School of Economics and Business Administration and Chr. Michelsen Institute,)

Abstract

Koopmans’s (Econometrica 28, 287–309) axiomatization of discounted utilitarianism is based on seemingly compelling conditions, yet this criterion leads to hard-to-justify outcomes. The present analysis considers a class of sustainable recursive social welfare functions within Koopmans’s general framework. This class is axiomatized by means of a weak new equity condition (“Hammond Equity for the Future”) and general existence is established. Any member of the class satisfies the key axioms of Chichilnisky’s (Social Choice and Welfare 13, 231–257) “sustainable preferences”. The analysis singles out one of Koopmans’s original conditions as particularly questionable from an ethical perspective.

Suggested Citation

  • Asheim, Geir B. & Mitra, Tapan & Tungodden, Bertil, 2006. "Sustainable recursive social welfare functions," Memorandum 18/2006, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2006_018
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    References listed on IDEAS

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    More about this item

    Keywords

    Intergenerational justice; sustainability; discounted utilitarianism;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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