Sustainability and the economics of assuring assets for future generations
This paper presumes the international discourse on the sustainability of development is concerned with: (a) the rights of future generations to the services of natural and produced assets; and (b) whether formal and informal institutions which affect the transfer of assets to future generations are adequate to assure the quality of life in the long-run. Sustainability is primarily an issue of intergenerational equity. The noneconomic discourse on sustainability is clearly about caring for the future. Conversely, this paper contests the implicit premises of economics as now practiced. First, in the face of the sustainability debate, many academic and practicing economists still assume that technology will offset resource depletion and environmental degradation. Second, existing theory on intertemporal resource allocation tacitly assumes that current generations hold all rights to assets and should efficiently exploit them. Third, there has been an implicit assumption that the mechanisms affecting the maintenance and transfer of assets to future generations are both working optimally and are unaffected by current economic decisions. This paper addresses each of these working premises of economics. It presents sociological explanations of how economics evolved to help identify how it became the way it is and to give perspective on how sustainability challenges the discipline.
|Date of creation:||31 Jan 1992|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Web page: http://www.worldbank.org/Email:
More information through EDIRC
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.:
- Slade, Margaret E., 1982. "Trends in natural-resource commodity prices: An analysis of the time domain," Journal of Environmental Economics and Management, Elsevier, vol. 9(2), pages 122-137, June.
- John Hartwick & Murray Kemp & Ngo van Long, 1980.
"Set-up Costs and Theory of Exhaustible Resources,"
412, Queen's University, Department of Economics.
- Berck, Peter, 1979. "Open Access and Extinction," Econometrica, Econometric Society, vol. 47(4), pages 877-82, July.
- Hall, Darwin C. & Hall, Jane V., 1984. "Concepts and measures of natural resource scarcity with a summary of recent trends," Journal of Environmental Economics and Management, Elsevier, vol. 11(4), pages 363-379, December.
- Ehrlich, Paul R., 1989. "The limits to substitution: Meta-resource depletion and a new economic-ecological paradigm," Ecological Economics, Elsevier, vol. 1(1), pages 9-16, February.
- Costanza, Robert, 1996. "The impact of ecological economics," Ecological Economics, Elsevier, vol. 19(1), pages 1-2, October.
- Halvorsen, Robert & Smith, Tim R, 1991. "A Test of the Theory of Exhaustible Resources," The Quarterly Journal of Economics, MIT Press, vol. 106(1), pages 123-40, February.
- Richard Howarth & Richard Norgaard, 1993. "Intergenerational transfers and the social discount rate," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(4), pages 337-358, August.
- Norgaard, Richard B., 1981. "Sociosystem and ecosystem coevolution in the amazon," Journal of Environmental Economics and Management, Elsevier, vol. 8(3), pages 238-254, September.
- Lind, Robert C., 1990. "Reassessing the government's discount rate policy in light of new theory and data in a world economy with a high degree of capital mobility," Journal of Environmental Economics and Management, Elsevier, vol. 18(2), pages S8-S28, March.
- Dasgupta, Swapan & Mitra, Tapan, 1983. "Intergenerational Equity and Efficient Allocation of Exhaustible Resources," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(1), pages 133-53, February.
- R. M. Solow, 1973. "Intergenerational Equity and Exhaustable Resources," Working papers 103, Massachusetts Institute of Technology (MIT), Department of Economics.
- Norgaard, Richard B., 1985. "Environmental economics: An evolutionary critique and a plea for pluralism," Journal of Environmental Economics and Management, Elsevier, vol. 12(4), pages 382-394, December.
- Hartwick, John M, 1978. "Substitution among Exhaustible Resources and Intergenerational Equity," Review of Economic Studies, Wiley Blackwell, vol. 45(2), pages 347-54, June.
- Agbeyegbe, Terence D., 1989. "Interest rates and metal price movements: Further evidence," Journal of Environmental Economics and Management, Elsevier, vol. 16(2), pages 184-192, March.
- Eckstein, Zvi & Stern, Steven & Wolpin, Kenneth I, 1988. "Fertility Choice, Land, and the Malthusian Hypothesis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(2), pages 353-61, May.
- Solow, Robert M, 1974. "The Economics of Resources or the Resources of Economics," American Economic Review, American Economic Association, vol. 64(2), pages 1-14, May.
- Norgaard, Richard B., 1990. "Economic indicators of resource scarcity: A critical essay," Journal of Environmental Economics and Management, Elsevier, vol. 19(1), pages 19-25, July.
- Cairns, Robert D, 1990. "A Contribution to the Theory of Depletable Resource Scarcity and Its Measures," Economic Inquiry, Western Economic Association International, vol. 28(4), pages 744-55, October.
- Farzin, Y Hossein, 1984. "The Effect of the Discount Rate on Depletion of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 92(5), pages 841-51, October.
- Norton, Bryan G., 1989. "Intergenerational equity and environmental decisions: A model using Rawls' veil of ignorance," Ecological Economics, Elsevier, vol. 1(2), pages 137-159, May.
- Norgaard, Richard B., 1989. "Three dilemmas of environmental accounting," Ecological Economics, Elsevier, vol. 1(4), pages 303-314, December.
- Howarth, Richard B., 1991. "Intergenerational competitive equilibria under technological uncertainty and an exhaustible resource constraint," Journal of Environmental Economics and Management, Elsevier, vol. 21(3), pages 225-243, November.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:832. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.