Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26128
Authors: 
Sinn, Hans-Werner
Year of Publication: 
2007
Series/Report no.: 
CESifo working paper 2083
Abstract: 
This note generalizes the Solow-Stiglitz efficiency condition for natural resources to the problem of fossil fuel extraction with a greenhouse effect. The generalized optimality condition suggests that the greenhouse effect implies overextraction in the sense of leaving future generations a wrongly composed wealth portfolio with too few natural resources relative to man-made capital. This judgment is independent of society's ethical preferences concerning the well-being of future generations.
JEL: 
O13
Q32
Q54
Document Type: 
Working Paper

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