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Sustainability and intertemporal equity: a multicriteria approach

Author

Listed:
  • Cinzia Colapinto

    (Ca’ Foscari University of Venice)

  • Danilo Liuzzi

    (University of Milan)

  • Simone Marsiglio

    (University of Wollongong)

Abstract

In (macro)economics literature, the need to consider sustainability and intertemporal equity issues leads to propose different criteria (discounted utilitarianism, green golden rule, Chichilnisky criterion) in order to define social welfare. We compare and assess the outcomes associated to such alternative criteria in a simple macroeconomic model with natural resources and environmental concern (Chichilnisky et al. in Econ Lett 49:174–179, 1995), by relying on a multicriteria approach. We show that among these three criteria, the green golden rule (discounted utilitarianism) yields the highest (lowest) welfare level, while the Chichilnisky criterion leads to an intermediate welfare level which turns out to be increasing in the weight attached to the asymptotic utility. These results suggest that completely neglecting finite-time utilities and focusing only on the asymptotic utility is not only more sensible from a sustainability point of view but also from a social welfare maximization standpoint.

Suggested Citation

  • Cinzia Colapinto & Danilo Liuzzi & Simone Marsiglio, 2017. "Sustainability and intertemporal equity: a multicriteria approach," Annals of Operations Research, Springer, vol. 251(1), pages 271-284, April.
    • Handle: RePEc:spr:annopr:v:251:y:2017:i:1:d:10.1007_s10479-015-1837-1
    DOI: 10.1007/s10479-015-1837-1
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    Cited by:

    1. Herb Kunze & Davide La Torre & Simone Marsiglio, 2019. "A Multicriteria Macroeconomic Model with Intertemporal Equity and Spatial Spillovers," Papers 1911.08247, arXiv.org.
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    3. Simone Marsiglio & Fabio Privileggi, 2021. "On the economic growth and environmental trade-off: a multi-objective analysis," Annals of Operations Research, Springer, vol. 296(1), pages 263-289, January.
    4. Torre, Davide La & Liuzzi, Danilo & Marsiglio, Simone, 2021. "Transboundary pollution externalities: Think globally, act locally?," Journal of Mathematical Economics, Elsevier, vol. 96(C).
    5. Cinzia Colapinto & Raja Jayaraman & Simone Marsiglio, 2017. "Multi-criteria decision analysis with goal programming in engineering, management and social sciences: a state-of-the art review," Annals of Operations Research, Springer, vol. 251(1), pages 7-40, April.
    6. Herb Kunze & Davide Torre & Simone Marsiglio, 2022. "Sustainability and spatial spillovers in a multicriteria macroeconomic model," Annals of Operations Research, Springer, vol. 311(2), pages 1067-1084, April.
    7. Davide Torre & Danilo Liuzzi & Simone Marsiglio, 2017. "Pollution Control Under Uncertainty and Sustainability Concern," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 885-903, August.

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