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

Antoine d'Autume () and Katheline Schubert
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Antoine d'Autume: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

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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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Citations: View citations in EconPapers (11)

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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