Sustainable exploitation of a natural resource: a satisfying use of Chichilnisky’s criterion
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.
(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.
Volume (Year): 49 (2012)
Issue (Month): 2 (February)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/economic+theory/journal/199/PS2|
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.:
- Heal, G., 1998. "Valuing the Future: Economic Theory and Sustainability," Papers 98-10, Columbia - Graduate School of Business.
- Geir Asheim & Tapan Mitra & Bertil Tungodden, 2012.
"Sustainable recursive social welfare functions,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(2), pages 267-292, February.
- 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.
- Tjalling C. Koopmans, 1959. "Stationary Ordinal Utility and Impatience," Cowles Foundation Discussion Papers 81, Cowles Foundation for Research in Economics, Yale University.
- David Levhari & Leonard J. Mirman, 1980. "The Great Fish War: An Example Using a Dynamic Cournot-Nash Solution," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 322-334, Spring.
- Franck Lecocq & Jean Charles Hourcade, 2012.
"Unspoken ethical issues in the climate affair: Insights from a theoretical analysis of negotiation mandates,"
- Franck Lecocq & Jean-Charles Hourcade, 2012. "Unspoken ethical issues in the climate affair: Insights from a theoretical analysis of negotiation mandates," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(2), pages 445-471, February.
- Luc LAUWERS, 2009.
"Ordering infinite utility streams comes at the cost of a non-Ramsey set,"
Working Papers Department of Economics
ces09.05, KU Leuven, Faculty of Economics and Business, Department of Economics.
- Lauwers, Luc, 2010. "Ordering infinite utility streams comes at the cost of a non-Ramsey set," Journal of Mathematical Economics, Elsevier, vol. 46(1), pages 32-37, January.
- Alvarez-Cuadrado, Francisco & Van Long, Ngo, 2009.
"A mixed Bentham-Rawls criterion for intergenerational equity: Theory and implications,"
Journal of Environmental Economics and Management,
Elsevier, vol. 58(2), pages 154-168, September.
- 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.
- ALVAREZ-CUADRADO, Francisco & LONG, Ngo Van, 2007. "A Mixed Bentham-Rawls Criterion for Intergenerational Equity : Theory and Implications," Cahiers de recherche 06-2007, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Graciela Chichilnisky, 1997. "What Is Sustainable Development?," Land Economics, University of Wisconsin Press, vol. 73(4), pages 467-491.
- Basu, Kaushik & Mitra, Tapan, 2003.
"Aggregating Infinite Utility Streams with Inter-generational Equity: The Impossibility of Being Paretian,"
03-03, Cornell University, Center for Analytic Economics.
- Kaushik Basu & Tapan Mitra, 2003. "Aggregating Infinite Utility Streams with InterGenerational Equity: The Impossibility of Being Paretian," Econometrica, Econometric Society, vol. 71(5), pages 1557-1563, 09.
- M. Fleurbaey & P. Michel, 1997.
"Intertemporal equity and the extension of the Ramsey criterion,"
THEMA Working Papers
97-11, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Fleurbaey, Marc & Michel, Philippe, 2003. "Intertemporal equity and the extension of the Ramsey criterion," Journal of Mathematical Economics, Elsevier, vol. 39(7), pages 777-802, September.
- FLEURBAEY, Marc & MICHEL, Philippe, 1997. "Intertemporal equity and the extension of the Ramsey criterion," CORE Discussion Papers 1997004, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Chichilnisky, Graciela & Beltratti, Andrea & Heal, Geoffrey, 1994. "The environment and the long run: A comparison of different criteria," MPRA Paper 7907, University Library of Munich, Germany.
- Chichilnisky, Graciela & Beltratti, Andrea & Heal, Geoffrey, 1998. "Sustainable use of renewable resources, Chapter 2.1," MPRA Paper 8815, University Library of Munich, Germany.
- Geir B. Asheim, 1996. "Ethical preferences in the presence of resource constraints," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 23, pages 55-67.
- Armon Rezai & Duncan Foley & Lance Taylor, 2012. "Global warming and economic externalities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(2), pages 329-351, February.
- Svensson, Lars-Gunnar, 1980. "Equity among Generations," Econometrica, Econometric Society, vol. 48(5), pages 1251-1256, July.
When requesting a correction, please mention this item's handle: RePEc:spr:joecth:v:49:y:2012:i:2:p:243-265. 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: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.