SUSTAINABILITY AS INTERGENERATIONAL FAIRNESS

This paper presents an economic model of sustainability defined as intergenerational fairness. Assuming that intergenerational fairness is an obligation of each generation, a recursive optimization problem is obtained. The problem has the advantage that uncertainty can readily be incorporated in the model and it can be solved numerically for a wide range of specifications. The possibility of tradeoffs between efficiency and sustainability are discussed. Under plausible conditions, it is show that a sustainability obligation is met only if there is the expectations of economic growth.


Subject(s):
Issue Date:
1999
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/24014
Total Pages:
27
Series Statement:
Faculty Paper Series FP 00-4




 Record created 2017-04-01, last modified 2017-08-24

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