Growth, Environment and Uncertain Future Preferences
The attitude of future generations towards environmental assets may well be different from ours, and it is necessary to take into account this possibility explicitly in the current debate about environmental policy. The question we are addressing here is: should uncertainty about future preferences lead to a more conservative attitude towards environment? Previous literature shows that it is the case when society expects that on average future preferences will be more in favor of environment than ours, but this result relies heavily on the assumption of a separability between consumption and environmental quality in the utility function. We show that things are less simple when preferences are non-separable: the attitude of the society now depends not only on the expectation of the change in preferences but also on the characteristics of the economy (impatience, intertemporal flexibility, natural capacities of regeneration of the environment, relative preference for the environment), on its history (initial level of the environmental quality) and on the date at which preferences are expected to change (near or far future).
|Date of creation:||May 2004|
|Date of revision:|
|Publication status:||Published in Environmental and Resource Economics, Springer, 2004, 28 (1), pp.31-53. <10.1023/B:EARE.0000023820.15522.a4>|
|Note:||View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00267891|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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.:
- 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.
- 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.
- Chichilnisky, Graciela & Beltratti, Andrea & Heal, Geoffrey, 1998. "Uncertain future preferences and conservation," MPRA Paper 7912, University Library of Munich, Germany.
- Smulders, J.A. & Gradus, R.H.J.M., 1996.
"Pollution abatement and long-term growth,"
Other publications TiSEM
1ed65010-f4ac-4a1f-84b6-4, Tilburg University, School of Economics and Management.
- 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.
When requesting a correction, please mention this item's handle: RePEc:hal:cesptp:hal-00267891. 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: (CCSD)
If references are entirely missing, you can add them using this form.