Characterizing the sustainable problem in an exhaustible resource model

T. Mitra, G. Asheim, W. Buchholz, C.A.A.M. Withagen

Research output: Contribution to journalArticle

Abstract

We provide a general condition under which consumption can be sustained indefinitely bounded away from zero in the continuous time Dasgupta-Heal-Solow-Stiglitz model, by letting augmentable capital substitute for a non-renewable resource. The assumptions made on the production function are mild, thus generalizing previous work. By showing that Hartwick's rule minimizes the required resource input per unit of capital accumulation, and integrating the required resource input with respect to capital, we obtain a complete technological characterization without reference to the time path. We also use the characterization result to establish general existence of a maximin path. © 2013 Elsevier Inc.
LanguageEnglish
Pages2164-2182
JournalJournal of Economic Theory
Volume148
Issue number5
DOIs
StatePublished - 2013

Fingerprint

Exhaustible resources
Resources
Maximin
Non-renewable resources
Hartwick rule
Continuous time
Substitute
Solow model
Capital accumulation
Production function

Cite this

Mitra, T. ; Asheim, G. ; Buchholz, W. ; Withagen, C.A.A.M./ Characterizing the sustainable problem in an exhaustible resource model. In: Journal of Economic Theory. 2013 ; Vol. 148, No. 5. pp. 2164-2182
@article{b65635594a5546b495219585abad9461,
title = "Characterizing the sustainable problem in an exhaustible resource model",
abstract = "We provide a general condition under which consumption can be sustained indefinitely bounded away from zero in the continuous time Dasgupta-Heal-Solow-Stiglitz model, by letting augmentable capital substitute for a non-renewable resource. The assumptions made on the production function are mild, thus generalizing previous work. By showing that Hartwick's rule minimizes the required resource input per unit of capital accumulation, and integrating the required resource input with respect to capital, we obtain a complete technological characterization without reference to the time path. We also use the characterization result to establish general existence of a maximin path. {\circledC} 2013 Elsevier Inc.",
author = "T. Mitra and G. Asheim and W. Buchholz and C.A.A.M. Withagen",
year = "2013",
doi = "10.1016/j.jet.2013.04.019",
language = "English",
volume = "148",
pages = "2164--2182",
journal = "Journal of Economic Theory",
issn = "0022-0531",
publisher = "Academic Press Inc.",
number = "5",

}

Characterizing the sustainable problem in an exhaustible resource model. / Mitra, T.; Asheim, G.; Buchholz, W.; Withagen, C.A.A.M.

In: Journal of Economic Theory, Vol. 148, No. 5, 2013, p. 2164-2182.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Characterizing the sustainable problem in an exhaustible resource model

AU - Mitra,T.

AU - Asheim,G.

AU - Buchholz,W.

AU - Withagen,C.A.A.M.

PY - 2013

Y1 - 2013

N2 - We provide a general condition under which consumption can be sustained indefinitely bounded away from zero in the continuous time Dasgupta-Heal-Solow-Stiglitz model, by letting augmentable capital substitute for a non-renewable resource. The assumptions made on the production function are mild, thus generalizing previous work. By showing that Hartwick's rule minimizes the required resource input per unit of capital accumulation, and integrating the required resource input with respect to capital, we obtain a complete technological characterization without reference to the time path. We also use the characterization result to establish general existence of a maximin path. © 2013 Elsevier Inc.

AB - We provide a general condition under which consumption can be sustained indefinitely bounded away from zero in the continuous time Dasgupta-Heal-Solow-Stiglitz model, by letting augmentable capital substitute for a non-renewable resource. The assumptions made on the production function are mild, thus generalizing previous work. By showing that Hartwick's rule minimizes the required resource input per unit of capital accumulation, and integrating the required resource input with respect to capital, we obtain a complete technological characterization without reference to the time path. We also use the characterization result to establish general existence of a maximin path. © 2013 Elsevier Inc.

U2 - 10.1016/j.jet.2013.04.019

DO - 10.1016/j.jet.2013.04.019

M3 - Article

VL - 148

SP - 2164

EP - 2182

JO - Journal of Economic Theory

T2 - Journal of Economic Theory

JF - Journal of Economic Theory

SN - 0022-0531

IS - 5

ER -