Fair Intergenerational Sharing of a Natural Resource
AbstractIn this article, overlapping generations are extracting a natural resource over an infinite future. We examine the fair allocation of resource and compensations among generations. Fairness is defined by core lower bounds and aspiration upper bounds. The core lower bounds require that every coalition of generations obtains at least what it could achieve by itself. The aspiration upper bounds require that no coalition of generations enjoys a higher welfare than it would achieve if nobody else extracted the resource. We show that, upon existence, the allocation that satisfies the two fairness criteria is unique and assigns to each generation its marginal contribution to the preceding generation. Finally, we describe the dynamics of such an allocation.
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Bibliographic InfoPaper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 09-084.
Date of creation: Sep 2009
Date of revision:
Other versions of this item:
- d'Albis, Hippolyte & Ambec, Stefan, 2010. "Fair intergenerational sharing of a natural resource," Mathematical Social Sciences, Elsevier, vol. 59(2), pages 170-183, March.
- Hippolyte D'Albis & Stefan Ambec, 2010. "Fair Intergenerational Sharing of a Natural Resource," Post-Print hal-00630440, HAL.
- d'ALBIS Hippolyte & AMBEC Stefan, 2009. "Fair intergenerational sharing of a natural resource," LERNA Working Papers 09.23.299, LERNA, University of Toulouse.
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Visite guidée au coeur des travaux du Meilleur jeune économiste 2012 (2/2)
by Matthieu Solignac in Regards croisés sur l'économie on 2012-06-10 22:05:40
- Wadho, Waqar Ahmed, 2011. "Education, Rent-seeking and the Curse of Natural Resources," MPRA Paper 37831, University Library of Munich, Germany.
- Beard, Rodney, 2011. "The river sharing problem: A review of the technical literature for policy economists," MPRA Paper 34382, University Library of Munich, Germany.
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