Constant Savings Rates and Quasi- Arithmetic Population Growth under Exhaustible Resource Constraints
نویسندگان
چکیده
In the Dasgupta-Heal-Solow-Stiglitz model of capital accumulation and resource depletion we show the following equivalence: If an efficient path has constant (gross and net of population growth) savings rates, then population growth must be quasi-arithmetic and the path is a maximin or a classical utilitarian optimum. Conversely, if a path is optimal according to maximin or classical utilitarianism (with constant elasticity of marginal utility) under quasiarithmetic population growth, then the (gross and net of population growth) savings rates converge asymptotically to constants. JEL Code: Q10, Q32.
منابع مشابه
Sustainable Development, Renewable Resources and Technological Progress
Conflicts between optimality and sustainability are typical in the literature on sustainable development. Using the ‘‘capital-resource’’ growth model, Pezzey and Withagen (1998, Scandinavian Journal of Economics 100 (2), 513–527) have proved that if natural resources are exhaustible, the time-path of consumption is single-peaked, declining from some point in time onwards. This paper extends the...
متن کاملSustainable Development and Green National Accounts
Defining sustainable development as non-declining utility, the relationship between sustainable development and optimal growth is examined critically in Part 1. The operation of the Hartwick rule for an exhaustible resource is explored under different values of the elasticity of substitution between capital and resources. The Hartwick rule is then extended to the case of fossil fuels, where car...
متن کاملSustainability and Substitution of Exhaustible Natural Resources How Resource Prices Affect Long-term R&d-investments Sustainability and Substitution of Exhaustible Natural Resources How Resource Prices Affect Long-term R&d-investments
Traditional resource economics has been criticised for assuming too high elasticities of substitution, not observing material balance principles and relying too much on planner solutions to obtain long-term growth. By analysing a multi-sector R&Dbased endogenous growth model with exhaustible natural resources, labour, knowledge, and physical capital as inputs, the present paper addresses this c...
متن کاملThrough Scarcity to Prosperity: A Theory of the Transition to Sustainable Growth
This paper integrates fertility choice and exhaustible resource dynamics in a tractable model of endogenous technological change. The analysis shows that, under the right conditions, the interdependence of population, resources and technology produces a transition from unsustainable resource-based growth to sustainable knowledge-based growth that consists of three phases: (1) an initial phase w...
متن کاملA Dynamic CGE Analysis of Exhaustible Resources: The Case of an Oil Exporting Developing Country
An extensive literature concerned with optimal depletion of an exhaustible resource, with only a few exceptions, ignores the economy-wide and sectoral distribution effects of resource depletion. This paper presents a dynamic computable general equilibrium model to link the underlying natural resource base to economic performance. The model consists of an intra-temporal price endogenous model of...
متن کامل