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Sustainable exploitation of a natural resource: a satisfying use of Chichilnisky's criterion

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  • Charles Figuières
  • Mabel Tidball

Abstract

Chichilnisky's criterion for sustainability has the merit to be, so far, the unique explicit, complete and continuous social welfare criterion that combines successfully the requirement of Weak Pareto with an instrumental notion of intergenerational equity (no dictatorship of the present and no dictatorhsip of the future). But it has one important drawback: in the context of renewable resources, there exists no exploitation path that maximizes this criterion. The present article suggests a way to cope with this weakness. We give good reasons to restrict admissible controls to the set of convex combinations between the discounted utilitarian program and the golden rule program. It is shown that optimal paths in this set exists under rather weak sufficient conditions on the fundamentals of the problem.

Suggested Citation

  • Charles Figuières & Mabel Tidball, 2006. "Sustainable exploitation of a natural resource: a satisfying use of Chichilnisky's criterion," Working Papers 06-03, LAMETA, Universtiy of Montpellier, revised Sep 2006.
  • Handle: RePEc:lam:wpaper:06-03
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    References listed on IDEAS

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    1. repec:ipg:wpaper:2 is not listed on IDEAS
    2. Geir Asheim & Tapan Mitra & Bertil Tungodden, 2012. "Sustainable recursive social welfare functions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(2), pages 267-292, February.
    3. Jean-Marc Burniaux & Joaquim Oliveira Martins, 2012. "Carbon leakages: a general equilibrium view," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(2), pages 473-495, February.
    4. Alvarez-Cuadrado, Francisco & Van Long, Ngo, 2009. "A mixed Bentham-Rawls criterion for intergenerational equity: Theory and implications," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 154-168, September.
    5. Figuières, Charles & Long, Ngo Van & Tidball, Mabel, 2017. "The MBR intertemporal choice criterion and Rawls’ just savings principle," Mathematical Social Sciences, Elsevier, vol. 85(C), pages 11-22.
    6. John Chipman & Guoqiang Tian, 2012. "Detrimental externalities, pollution rights, and the “Coase theorem”," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(2), pages 309-327, February.
    7. Verchère, Alban, 2011. "Le développement durable en question : analyses économiques autour d’un improbable compromis entre acceptions optimiste et pessimiste du rapport de l’Homme à la Nature," L'Actualité Economique, Société Canadienne de Science Economique, vol. 87(3), pages 337-403, septembre.
    8. Alain Ayong Le Kama & Thai Ha-Huy & Cuong Le Van & Katheline Schubert, 2014. "A never-decisive and anonymous criterion for optimal growth models," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(2), pages 281-306, February.
    9. Larry Karp & Jiangfeng Zhang, 2012. "Taxes versus quantities for a stock pollutant with endogenous abatement costs and asymmetric information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(2), pages 371-409, February.
    10. Armon Rezai & Duncan Foley & Lance Taylor, 2012. "Global warming and economic externalities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(2), pages 329-351, February.
    11. Geir B. Asheim & Ivar Ekeland, 2016. "Resource conservation across generations in a Ramsey–Chichilnisky model," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 61(4), pages 611-639, April.
    12. Elinor Ostrom, 2012. "Nested externalities and polycentric institutions: must we wait for global solutions to climate change before taking actions at other scales?," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(2), pages 353-369, February.
    13. Christian Traeger, 2014. "Why uncertainty matters: discounting under intertemporal risk aversion and ambiguity," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(3), pages 627-664, August.
    14. Prajit Dutta & Roy Radner, 2012. "Capital growth in a global warming model: will China and India sign a climate treaty?," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(2), pages 411-443, February.
    15. repec:ipg:wpaper:2013-002 is not listed on IDEAS
    16. repec:spr:annopr:v:251:y:2017:i:1:d:10.1007_s10479-015-1837-1 is not listed on IDEAS

    More about this item

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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