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Non-Smooth Sustainable Development With Overshooting

Author

Listed:
  • Hassan Benchekroun
  • Seiichi Katayama
  • Ngo Van Long

Abstract

We show that, in a model with substitutability between capital and resources, the path of sustainable development may be non-smooth, and may exhibit the overshooting property: starting from low levels of capital and resources, the economy may accumulate capital beyond its steady-state level, before converging to it in finite time. Nous démontrons que, dans un modèle avec la substitution entre le capital et les ressources naturelles, le sentier du développement peut être non-monotone. Si l'on commence avec un niveau faible de capital et de ressources naturelles, le sentier optimal peut dépasse le niveau du capital de l'état stationnaire. La convergence s'effectue en temps fini.

Suggested Citation

  • Hassan Benchekroun & Seiichi Katayama & Ngo Van Long, 2006. "Non-Smooth Sustainable Development With Overshooting," CIRANO Working Papers 2006s-26, CIRANO.
  • Handle: RePEc:cir:cirwor:2006s-26
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    File URL: https://cirano.qc.ca/files/publications/2006s-26.pdf
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    References listed on IDEAS

    as
    1. Dockner,Engelbert J. & Jorgensen,Steffen & Long,Ngo Van & Sorger,Gerhard, 2000. "Differential Games in Economics and Management Science," Cambridge Books, Cambridge University Press, number 9780521637329.
    2. Chichilnisky, Graciela & Beltratti, Andrea & Heal, Geoffrey, 1998. "Sustainable use of renewable resources, Chapter 2.1," MPRA Paper 8815, University Library of Munich, Germany.
    3. Clark, Colin W & Clarke, Frank H & Munro, Gordon R, 1979. "The Optimal Exploitation of Renewable Resource Stocks: Problems of Irreversible Investment," Econometrica, Econometric Society, vol. 47(1), pages 25-47, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    sustainable development; renewable resources; développement soutenable; ressources naturelles renouvelables;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D60 - Microeconomics - - Welfare Economics - - - General

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