Characterizing the sustainability problem in an exhaustible resource model

• 成果类型: Article
• 署名作者: Mitra, Tapan; Asheim, Geir B.; Buchholz, Wolfgang; Withagen, Cees
• 署名单位: Cornell University; University of Oslo; University of Regensburg; Vrije Universiteit Amsterdam
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2013.04.019
• 发表日期: 2013
• 页码: 2164-2182
• 关键词: sustainability; Maximin

摘要

We provide a general condition under which consumption can be sustained indefinitely bounded away from zero in the continuous time Dasgupta-Heal-Solow-Stiglitz model, by letting augmentable capital substitute for a non-renewable resource. The assumptions made on the production function are mild, thus generalizing previous work. By showing that Hartwick's rule minimizes the required resource input per unit of capital accumulation, and integrating the required resource input with respect to capital, we obtain a complete technological characterization without reference to the time path. We also use the characterization result to establish general existence of a maximin path. (C) 2013 Elsevier Inc. All rights reserved.