Endogenous Time Preference, and Sustainable Growth and Sustainable Development: An Outlook

Kei Hosoya
Additional contact information
Kei Hosoya: Professor, Faculty of Economics, Kokugakuin University

Public Policy Review, 2023, vol. 19, issue 3, 1-33

Abstract: This paper makes a distinction between the analytical viewpoints of sustainable growth and sustainable development, which are derived from the concept of sustainability, and conducts a detailed review of the two major research papers that represent the milestones of research on environmental macroeconomics in recent years. Here, the analysis focuses on the point that the research itself introduces an endogenously determined time preference function with a relatively long history, into the dynamic framework of environmental macroeconomics. Research on macroeconomic dynamics has pointed out the importance of so-called “deep parameters.” The rate of time preference is one of such parameters, and we can say that it has also continued to influence macro-theoretical research in environmental economics. The first model examines the impact of environmental taxes under endogenous time preference, in the context of sustainable growth being achieved. Next, the second model derives the dynamic features of the model when complex endogenous time preferences are considered, based on definitions that are rooted in the concept of sustainable development as the constancy of utility over time.

Keywords: endogenous time preference; sustainable growth; environmental tax(Pigouvian tax); sustainable development; Hartwick Rule; Hotelling Rule (search for similar items in EconPapers)
JEL-codes: H23 I31 O44 Q32 Q56 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.57520/prippr.19-3-5 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mof:journl:ppr19_03_05

Access Statistics for this article

More articles in Public Policy Review from Policy Research Institute, Ministry of Finance Japan Contact information at EDIRC.
Bibliographic data for series maintained by Policy Research Institute ().