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

Author

Listed:
  • Chichilnisky, Graciela
  • Beltratti, Andrea
  • Heal, Geoffrey
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).

Suggested Citation

  • Chichilnisky, Graciela & Beltratti, Andrea & Heal, Geoffrey, 1994. "The environment and the long run: A comparison of different criteria," MPRA Paper 7907, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:7907
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    References listed on IDEAS

    as
    1. Graciela Chichilnisky, 1997. "What Is Sustainable Development?," Land Economics, University of Wisconsin Press, vol. 73(4), pages 467-491.
    2. Jeffrey A. Krautkraemer, 1985. "Optimal Growth, Resource Amenities and the Preservation of Natural Environments," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(1), pages 153-169.
    3. Heal, Geoffrey M., 1993. "The optimal use of exhaustible resources," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 3, chapter 18, pages 855-880, Elsevier.
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    6. Chichilnisky, Graciela & Heal, Geoffrey & Beltratti, Andrea, 1995. "The Green Golden Rule," Economics Letters, Elsevier, vol. 49(2), pages 175-179, August.
    7. Dutta, P.K., 1991. "What Do Discounted Optima Converge To? A Theory of Discount Rate Asymptotics in Economic Models," RCER Working Papers 264, University of Rochester - Center for Economic Research (RCER).
    8. Robert M. Solow, 1974. "The Economics of Resources or the Resources of Economics," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 12, pages 257-276, Palgrave Macmillan.
    9. Lauwers, Luc, 1993. "Infinite Chichilnisky rules," Economics Letters, Elsevier, vol. 42(4), pages 349-352.
    10. Partha Dasgupta & Geoffrey Heal & Joseph E. Stiflitx, 1980. "The Taxation of Exhaustible Resources," NBER Working Papers 0436, National Bureau of Economic Research, Inc.
    11. Chichilnisky Graciela & Heal Geoffrey M., 1993. "Competitive Equilibrium in Sobolev Spaces without Bounds on Short Sales," Journal of Economic Theory, Elsevier, vol. 59(2), pages 364-384, April.
    12. John Ferejohn & Talbot Page, 1978. "On the Foundations of Intertemporal Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 269-275.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. 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.
    2. Charles Figuières & Mabel Tidball, 2016. "Sustainable Exploitation of a Natural Resource: A Satisfying Use of Chichilnisky’s Criterion," Studies in Economic Theory, in: Graciela Chichilnisky & Armon Rezai (ed.), The Economics of the Global Environment, pages 207-229, Springer.
    3. Arbex, Marcelo & Batu, Michael, 2020. "What if people value nature? Climate change and welfare costs," Resource and Energy Economics, Elsevier, vol. 61(C).
    4. Noël Bonneuil & Raouf Boucekkine, 2014. "Viable Ramsey economies," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(2), pages 422-441, May.
    5. Rozenberg, Julie & Vogt-Schilb, Adrien & Hallegatte, Stephane, 2014. "Transition to clean capital, irreversible investment and stranded assets," Policy Research Working Paper Series 6859, The World Bank.
    6. Attílio, Luccas Assis & Faria, João Ricardo & Rodrigues, Mauro, 2023. "Does monetary policy impact CO2 emissions? A GVAR analysis," Energy Economics, Elsevier, vol. 119(C).
    7. Chichilnisky, Graciela & Heal, Geoffrey & Beltratti, Andrea, 1995. "The Green Golden Rule," Economics Letters, Elsevier, vol. 49(2), pages 175-179, August.
    8. Chichilnisky, Graciela & Beltratti, Andrea & Heal, Geoffrey, 1998. "Sustainable use of renewable resources, Chapter 2.1," MPRA Paper 8815, University Library of Munich, Germany.
    9. Semmler, Willi & Sieveking, Malte, 2000. "Critical debt and debt dynamics," Journal of Economic Dynamics and Control, Elsevier, vol. 24(5-7), pages 1121-1144, June.
    10. Chichilnisky, Graciela, 2009. "Avoiding extinction: equal treatment of the present and the future," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-25.
    11. Noël Bonneuil & Raouf Boucekkine, 2009. "Sustainability, optimality, and viability in the Ramsey model," Working Papers 2009_34, Business School - Economics, University of Glasgow.
    12. Joao R. Faria & Peter Mcadam & Bruno Viscolani, 2023. "Monetary Policy, Neutrality, and the Environment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(7), pages 1889-1906, October.
    13. Stefano BOSI & David DESMARCHELIER & Thai HA-HUY, 2024. "Taste for nature and long-run cycles," Working Papers of BETA 2024-23, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    14. Döpke, Lena-Katharina & Requate, Till, 2014. "The economics of exploiting gas hydrates," Energy Economics, Elsevier, vol. 42(C), pages 355-364.
    15. Mabrouk, Mohamed, 2006. "Allais-anonymity as an alternative to the discounted-sum criterion in the calculus of optimal growth I: Consensual optimality," MPRA Paper 10512, University Library of Munich, Germany.

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    More about this item

    Keywords

    Sustainable resources; environment; growth;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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