Invariance in growth theory and sustainable development
This paper analyzes the general concept of sustainability from a different point of view than that generally found in the literature. If sustainability is defined as the requirement to keep something constant or at least non-decreasing throughout time, the choice of the thing to be preserved is controversial. Neo-classical models mainly assume that sustainability requires that consumption or a utility level has to be preserved. In this article, the authors object to this a priori conception of sustainability and define all the quantities that can be preserved in neo-classical optimal growth models. They thus wonder if invariant quantities can be found along the optimal paths defined by a classical representation of an economy with an exhaustible resource. They use the Noether theorem to determine the conservation laws of dynamic systems and examine under which conditions there is such invariance and how it could be interpreted as a sustainability indicator. They emphasize the limits of the economic growth theory for coping with the sustainability issue.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Hartwick, John M, 1977.
"Intergenerational Equity and the Investing of Rents from Exhaustible Resources,"
American Economic Review,
American Economic Association, vol. 67(5), pages 972-74, December.
- John Hartwick, 1976. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," Working Papers 220, Queen's University, Department of Economics.
- Chichilnisky, Graciela & Heal, Geoffrey & Beltratti, Andrea, 1995. "The Green Golden Rule," Economics Letters, Elsevier, vol. 49(2), pages 175-179, August.
- Asheim, Geir B. & Buchholz, Wolfgang & Tungodden, Bertil, 2001.
Journal of Environmental Economics and Management,
Elsevier, vol. 41(3), pages 252-268, May.
- Heal, G., 1998. "Valuing the Future: Economic Theory and Sustainability," Papers 98-10, Columbia - Graduate School of Business.
- Sato, Ryuzo & Kim, Youngduk, 2002. "Hartwick's rule and economic conservation laws," Journal of Economic Dynamics and Control, Elsevier, vol. 26(3), pages 437-449, March.
- Avinash Dixit & Peter Hammond & Michael Hoel, 1980. "On Hartwick's Rule for Regular Maximin Paths of Capital Accumulation and Resource Depletion," Review of Economic Studies, Oxford University Press, vol. 47(3), pages 551-556.
- Stavins, Robert & Wagner, Alexander & Wagner, Gernot, 2002.
"Interpreting Sustainability in Economic Terms: Dynamic Efficiency Plus Intergenerational Equity,"
dp-02-29, Resources For the Future.
- 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.
- 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.
- Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002. "Time Discounting and Time Preference: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 351-401, June.
- Graciela Chichilnisky, 1996.
"An axiomatic approach to sustainable development,"
Social Choice and Welfare,
Springer;The Society for Social Choice and Welfare, vol. 13(2), pages 231-257, April.
- R. M. Solow, 1974.
"Intergenerational Equity and Exhaustible Resources,"
Review of Economic Studies,
Oxford University Press, vol. 41(5), pages 29-45.
- R. M. Solow, 1973. "Intergenerational Equity and Exhaustable Resources," Working papers 103, Massachusetts Institute of Technology (MIT), Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:eee:dyncon:v:31:y:2007:i:8:p:2827-2846. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.