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Growth, Environment and Uncertain Future Preferences

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

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.

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Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Papiers d'Economie Mathématique et Applications with number 1999.52.

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Length: 23 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:pariem:1999.52
Contact details of provider: Postal: France; Universite de Paris I - Pantheon- Sorbonne, 12 Place de Pantheon-75005 Paris, France
Phone: + 33 44 07 81 00
Fax: + 33 1 44 07 83 01
Web page: http://cermsem.univ-paris1.fr/
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  1. repec:ner:tilbur:urn:nbn:nl:ui:12-72815 is not listed on IDEAS
  2. Geoffrey Heal & Bengt Kriström, 2002. "Uncertainty and Climate Change," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 3-39, June.
  3. Alain Ayong Le Kama, 2001. "Preservation and exogenous uncertain future preferences," Economic Theory, Springer, vol. 18(3), pages 745-752.
  4. Smulders, Sjak & Gradus, Raymond, 1996. "Pollution abatement and long-term growth," European Journal of Political Economy, Elsevier, vol. 12(3), pages 505-532, November.
  5. Chichilnisky, Graciela & Beltratti, Andrea & Heal, Geoffrey, 1998. "Uncertain future preferences and conservation," MPRA Paper 7912, University Library of Munich, Germany.
  6. Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October.
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