Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142522
Authors: 
Bazhanov, Andrei V.
Year of Publication: 
2008
Series/Report no.: 
EERI Research Paper Series 11/2008
Abstract: 
I offer an approach linking a welfare criterion to the “sustainable development opportunities” of the economy. This implies a dependence of a criterion on the information about the current state. I consider the problem for the Dasgupta-Heal-Solow-Stiglitz model with externalities. The economy-linked criterion is constructed on an example of the maximin principle applied to a hybrid level-growth measure. This measure includes as special cases the conventional measures of consumption level and percent change as a measure of growth. The hybrid measure or geometrically weighted percent can be used for measuring sustainable growth as an alternative to percent. The closed form solutions are obtained for the optimal paths including the paths, dynamically consistent with the updates in reserve estimates.
Subjects: 
Essential nonrenewable resource
modified Hotelling Rule
economy-linked criterion
geometrically weighted percent
normative resource peak
JEL: 
O13
O47
Q32
Q38
Document Type: 
Working Paper

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