Bazhanov, Andrei (2010): A closed form solution to Stollery's global warming problem with temperature in utility.
Download (242kB) | Preview
Stollery (1998) studied a polluting oil extracting economy governed by the constant utility criterion. The pollution caused the growth of temperature, negatively affecting production and utility. Stollery provided a closed form solution for the case with the Cobb-Douglas production function and temperature affecting only production. This paper offers a closed form solution to a non-trivial example of this economy with utility affected by temperature.
|Item Type:||MPRA Paper|
|Original Title:||A closed form solution to Stollery's global warming problem with temperature in utility|
|Keywords:||essential nonrenewable resource; polluting economy; sustainable development; special function representation|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q32 - Exhaustible Resources and Economic Development
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q38 - Government Policy
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
|Depositing User:||Andrei Bazhanov|
|Date Deposited:||30. Apr 2010 02:19|
|Last Modified:||23. Feb 2013 05:50|
Asheim G. B. 2005. Intergenerational ethics under resource constraints. Swiss Journal of Economics and Statistics. 141(3), 313--330.
Bazhanov A.V. 2009a. Maximin-optimal sustainable growth in a resource-based imperfect economy. MPRA Paper No. 19258.
Bazhanov A.V. 2009b. A constant-utility criterion linked to an imperfect economy affected by irreversible global warming. EERI Research Paper Series No 03/2009
Bazhanov A.V. 2010. Sustainable growth: Compatibility between a plausible growth criterion and the initial state. Resources Policy 35(2), in press, doi:10.1016/j.resourpol.2010.01.002
CERA 2006. Peak oil theory -- "world running out of oil soon" -- is faulty; could distort policy & energy debate. Cambridge Energy Research Associates, Inc. (November 14, 2006). Accessed on March 17, 2010 at <http://www.cera.com/aspx/cda/public1/news/pressReleases/pressReleaseDetails.aspx?CID=8444>
Corless R. M., Gonnet G. H., Hare D. E. G., Jeffrey D. J., Knuth D. E. 1996. On the Lambert W function. Advances in Computational Mathematics 5(1): 329--359. Accessed on March 17, 2010 at http://www.apmaths.uwo.ca/~rcorless/frames/PAPERS/LambertW/LambertW.ps.
Dasgupta P., Heal G. 1974. The optimal depletion of exhaustible resources. Review of Economic Studies 41, 3--28.
Dasgupta P., Heal G. 1979. Economic Theory and Exhaustible Resources. Cambridge University Press, Cambridge, England.
D'Autume A., Schubert K. 2008. Hartwick's rule and maximin paths when the exhaustible resource has an amenity value. Journal of Environmental Economics and Management 56(3), 260--274.
Hamilton K., Withagen C. 2007. Savings growth and the path of utility. Canadian Journal of Economics 40(2): 703--713.
Hartwick J.M. 1977. Intergenerational equity and the investing of rents from exhaustible resources. American Economic Review 67, 972--974.
Krautkraemer J.A. 1985. Optimal growth, resource amenities and the preservation of natural environments. Review of Economic Studies 52, 153--170.
Leonard D., Long N.V. 1992. Optimal control theory and static optimization in economics. Cambridge University Press, NY.
Newbery D.M.G. 1981. Oil prices, cartels, and the problem of dynamic inconsistency. Economic Journal 91(363), 617--646.
Nordhaus W.D., Boyer J. 2000. Warming the World: Economic Models of Global Warming. MIT Press, Cambridge.
Pezzey J.C.V. 2004. Exact measures of income in a hyperbolic economy. Environment and Development Economics 9, 473--484.
Solow R.M. 1974. Intergenerational equity and exhaustible resources. Review of Economic Studies 41, 29--45.
Stiglitz J. 1974. Growth with exhaustible natural resources: Efficient and optimal growth paths. Review of Economic Studies 41, 123--137.
Stollery K.R. 1998. Constant utility paths and irreversible global warming. Canadian Journal of Economics 31(3), 730--742.
World Oil 2009. Worldwide look at reserves and production. Oil and Gas Journal 107(47), 20--21.