Maximin-optimal sustainable growth with nonrenewable resource and externalities

Arbeitspapier

I offer an approach linking a welfare criterion to the “sustainable development opportunities” of the economy. This implies a dependence of a criterion on the information about the current state. I consider the problem for the Dasgupta-Heal-Solow-Stiglitz model with externalities. The economy-linked criterion is constructed on an example of the maximin principle applied to a hybrid level-growth measure. This measure includes as special cases the conventional measures of consumption level and percent change as a measure of growth. The hybrid measure or geometrically weighted percent can be used for measuring sustainable growth as an alternative to percent. The closed form solutions are obtained for the optimal paths including the paths, dynamically consistent with the updates in reserve estimates.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: EERI Research Paper Series ; No. 11/2008

Classification and Topics

• Classification: Wirtschaft ; Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Exhaustible Resources and Economic Development ; Nonrenewable Resources and Conservation: Government Policy
• Subject: Essential nonrenewable resource ; modified Hotelling Rule ; economy-linked criterion ; geometrically weighted percent ; normative resource peak

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bazhanov, Andrei V.
• Event: Veröffentlichung
• (who): Economics and Econometrics Research Institute (EERI)
• (where): Brussels
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/142522
• Last update: 10.03.2025, 11:42 AM CET