Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171482
Authors: 
Valente, Simone
Year of Publication: 
2005
Series/Report no.: 
Economics Working Paper Series 05/38
Abstract: 
Green accounting theories have shown that negative genuine savings at some point in time imply unsustainability. Consequently, recent studies advocate the use of the genuine savings measure for empirical testing: a negative index implies sustainability be rejected. This criterion is not forward-looking: positive current genuine savings do not rule out ’genuine dissaving’ in the future. This paper derives a one-to-one relationship between the sign of longrun genuine savings and the limiting sustainability condition in the capital-resource model: if the sum of the rates of resource regeneration and augmentation exceeds (falls short of) the discount rate, long-run genuine savings are positive (negative). Testing this limiting condition allows to reveal whether current genuine savings are delivering a false message.
Subjects: 
Genuine Saving
Green Accounting
Renewable Resources
Sustainable Development
Technological Progress
JEL: 
Q01
O47
D90
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
492.04 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.