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Sustainable exploitation of a natural resource: a satisfying use of Chichilnisky's criterion

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Author Info
Charles Figuières
Mabel Tidball

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Abstract

Chichilnisky's criterion for sustainability has the merit to be, so far, the unique explicit, complete and continuous social welfare criterion that combines successfully the requirement of Weak Pareto with an instrumental notion of intergenerational equity (no dictatorship of the present and no dictatorhsip of the future). But it has one important drawback: in the context of renewable resources, there exists no exploitation path that maximizes this criterion. The present article suggests a way to cope with this weakness. We give good reasons to restrict admissible controls to the set of convex combinations between the discounted utilitarian program and the golden rule program. It is shown that optimal paths in this set exists under rather weak sufficient conditions on the fundamentals of the problem.

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File URL: http://www.lameta.univ-montp1.fr/Fr/Productions/Documents/DR2006-03.pdf
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Publisher Info
Paper provided by LAMETA, Universtiy of Montpellier in its series Working Papers with number 06-03.

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Length: 20 pages
Date of creation: Sep 2006
Date of revision: Sep 2006
Handle: RePEc:lam:wpaper:06-03

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Web page: http://www.lameta.univ-montp1.fr/
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  1. 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!]
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