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Growth, Environment and Uncertain Future Preferences

Author

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  • Ayong Le Kama, A.
  • Schubert, K.

Abstract

The attitude of future generations towards environmental assets could be different from ours, and it is necessary to take into account explicitly this possibility in the current debate about environmental policy. The question we address here is : should uncertainty about future preferences lead to a more conservative attitude towards environment ? We show that in general it is not the case when preferences are non-separable between consumption and environmental quality. Only separable preferences, or an uncertainty about the time at which preferences could change associated with specific characteristics of the economy, could justify a more conservative attitude from now.

Suggested Citation

  • Ayong Le Kama, A. & Schubert, K., 1999. "Growth, Environment and Uncertain Future Preferences," Papiers d'Economie Mathématique et Applications 1999.52, Université Panthéon-Sorbonne (Paris 1).
  • Handle: RePEc:fth:pariem:1999.52
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    References listed on IDEAS

    as
    1. Smulders, Sjak & Gradus, Raymond, 1996. "Pollution abatement and long-term growth," European Journal of Political Economy, Elsevier, vol. 12(3), pages 505-532, November.
    2. Alain Ayong Le Kama, 2001. "Preservation and exogenous uncertain future preferences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 18(3), pages 745-752.
    3. Chichilnisky, Graciela & Beltratti, Andrea & Heal, Geoffrey, 1998. "Uncertain future preferences and conservation," MPRA Paper 7912, University Library of Munich, Germany.
    4. Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October.
    5. Geoffrey Heal & Bengt Kriström, 2002. "Uncertainty and Climate Change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 3-39, June.
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    More about this item

    Keywords

    ECONOMIC GROWTH ; ENVIRONMENT ; RISK;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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