Preservation and Endogenous Uncertain Future Preferences
We extend the Beltratti, Chichilnisky and Heal’s (1993) and (1998) continuoustime stochastic dynamic framework to analyze the optimal depletion of an environmental asset whose consumption is irreversible, in the face of an exogenous uncertainty about future preferences. We introduce an endogenous uncertainty about future preferences. The idea is that the ability of the future generations to change their preferences will depend on the state of the asset. More precisely, we assume that future generations may have a probability to change their preferences all the higher since the stock of the resource becomes low. We describe within this model more clearly the behavior of the central planner facing this type of uncertainty.
References listed on IDEAS
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- Alain Ayong Le Kama & Katheline Schubert, 2007. "A note on the consequences of an endogenous discounting depending on the environmental quality," Post-Print halshs-00206326, HAL.
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"A Note On The Consequences Of An Endogenous Discounting Depending On The Environmental Quality,"
Cambridge University Press, vol. 11(02), pages 272-289, April.
- Alain Ayong Le Kama & Katheline Schubert, 2007. "A note on the consequences of an endogenous discounting depending on the environmental quality," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00206326, HAL.
- Alain Le Kama & Katheline Schubert, 2004.
"Growth, Environment and Uncertain Future Preferences,"
Environmental & Resource Economics,
Springer;European Association of Environmental and Resource Economists, vol. 28(1), pages 31-53, May.
- Ayong Le Kama, A. & Schubert, K., 1999. "Growth, Environment and Uncertain Future Preferences," Papiers d'Economie MathÃ©matique et Applications 1999.52, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Alain Ayong Le Kama & Katheline Schubert, 2004. "Growth, Environment and Uncertain Future Preferences," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00267891, HAL.
- Alain Ayong Le Kama, 2001.
"Preservation and exogenous uncertain future preferences,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 18(3), pages 745-752.
- Alain Ayong Le Kama, 2012. "Preservation and Endogenous Uncertain Future Preferences," Working Papers 1204, Chaire Economie du Climat.
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