Munich Personal RePEc Archive

The environment and the long run: A comparison of different criteria

Chichilnisky, Graciela and Beltratti, Andrea and Heal, Geoffrey (1994): The environment and the long run: A comparison of different criteria. Published in: Richerche Economiche , Vol. 48, (1994): pp. 319-340.

[img]
Preview
PDF
MPRA_paper_7907.pdf

Download (3MB) | Preview

Abstract

Ws use growth models with natural resources to study the con- sequences of a ranking of intertemporal paths, due to Chichilnisky, which places weight on their very long run or limiting characteristics as well as on their characteristics over any finite period. This criterion shows more intertemporal symmetry or egalitarianism than the dis- counted utilitarian approach, which dearly emphasizes the immediate future at the expense of the long run. In this respect it captures the concerns of those who argue for sustainability and for a heightened sense of responsibility to the future. In some of the examples that we consider, the long-run characteristics of paths optimal by this criterion are a mixture of those of utilitarian paths and the "green golden rule" (the configuration which maximizes long-run sustainable utility from consumption and environment).

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.