Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/208281
Authors: 
Faria, João Ricardo
McAdam, Peter
Year of Publication: 
2019
Series/Report no.: 
ECB Working Paper 2247
Abstract: 
We derive the Green Golden Rule (GGR) in the Habit Formation (HF) and Anticipation of Future Consumption (AFC) frameworks. Since consumption is the key variable of GGR, time non-separabilities in preferences over consumption streams, given by the AFC and HF, may have important impacts on the environment and sustainability. We demonstrate that agents who smooth their consumption patterns, according to the HF hypothesis, are more likely to preserve the environment than those who anticipate future consumption or who do not so smooth consumption.
Subjects: 
Sustainability
Environment
Resources
Growth
JEL: 
D90
Q56
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3509-8
Document Type: 
Working Paper

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