Characterizing the Sustainability Problem in an Exhaustible Resource Model

Tapan Mitra, Geir Asheim, Wolfgang Buchholz () and Cees Withagen

No 08/2012, Memorandum from Oslo University, Department of Economics

Abstract: The Dasgupta-Heal-Solow-Stiglitz model of capital accumulation and resource depletion poses the following sustainability problem: is it feasible to sustain indefinitely a level of consumption that is bounded away from zero? We provide a complete technological characterization of the sustainability problem in this model without reference to the time path. As a byproduct we show general existence of a maximin optimal path under weaker conditions that those employed in previous work. Our proofs yield new insights into the meaning and significance of Hartwick's reinvestment rule.

Keywords: Sustainability; Maximin (search for similar items in EconPapers)
JEL-codes: O10 Q32 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2012-03-05
New Economics Papers: this item is included in nep-env
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Characterizing the sustainability problem in an exhaustible resource model (2013)
Working Paper: Characterizing the Sustainability Problem in an Exhaustible Resource Model (2012)
Working Paper: Characterizing the sustainability problem in an exhaustible resource model (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:osloec:2012_008

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