Non-Smooth Sustainable Development With Overshooting

Hassan Benchekroun (), Seiichi Katayama and Ngo Van Long

CIRANO Working Papers from CIRANO

Abstract: We show that, in a model with substitutability between capital and resources, the path of sustainable development may be non-smooth, and may exhibit the overshooting property: starting from low levels of capital and resources, the economy may accumulate capital beyond its steady-state level, before converging to it in finite time.

Nous démontrons que, dans un modèle avec la substitution entre le capital et les ressources naturelles, le sentier du développement peut être non-monotone. Si l’on commence avec un niveau faible de capital et de ressources naturelles, le sentier optimal peut dépasse le niveau du capital de l’état stationnaire. La convergence s’effectue en temps fini.

Keywords: sustainable development; renewable resources; développement soutenable; ressources naturelles renouvelables (search for similar items in EconPapers)
JEL-codes: C73 H41 D60 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env and nep-pbe
Date: 2006-11-01
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Persistent link: http://EconPapers.repec.org/RePEc:cir:cirwor:2006s-26

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