Zero discounting and optimal paths of depletion of an exhaustible resource with an amenity value

Antoine d'Autume and Katheline Schubert

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This paper studies the undiscounted utilitarian optimal paths of the canonical Dasgupta--Heal--Solow model when the stock of natural capital is a direct argument of well-being, besides consumption. We use a Keynes--Ramsey rule which yields a generalization of Hartwick's rule. We characterize solutions in the Cobb-Douglas utility case, and analyse the influence of the intertemporal elasticity of substitution on the time profile of the optimal paths. We show that the ratio of the values of the resource and capital stocks remains constant along the optimal path, and is independent of the initial conditions.

Keywords: undiscounted utilitarianism; maximin; Hartwick's rule (search for similar items in EconPapers)
Date: 2008
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00976395v1
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Published in Revue d'économie politique, 2008, 119 (6), pp.827-845

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Related works:
Working Paper: Zero discounting and optimal paths of depletion of an exhaustible resource with an amenity value (2009)
Working Paper: Zero discounting and optimal paths of depletion of an exhaustible resource with an amenity value (2009)
Working Paper: Zero discounting and optimal paths of depletion of an exhaustible resource with an amenity value (2009)
Journal Article: Zero discounting and optimal paths of depletion of an exhaustible resource with an amenity value (2008)
Working Paper: Zero discounting and optimal paths of depletion of an exhaustible resource with an amenity value (2008)
Working Paper: Zero discounting and optimal paths of depletion of an exhaustible resource with an amenity value (2008)
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