Constant Savings Rates and Quasi-arithmetic Population Growth under Exhaustible Resource Constraints

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

Research output: Contribution to journalArticle

Abstract

In the Dasgupta-Heal-Solow-Stiglitz (DHSS) model of capital accumulation and resource depletion we show the following equivalence: if an efficient path has constant (gross and net of population growth) savings rates, then population growth must be quasi-arithmetic and the path is a maximin or a classical utilitarian optimum. Conversely, if a path is optimal according to maximin or classical utilitarianism (with constant elasticity of marginal utility) under quasi-arithmetic population growth, then the (gross and net of population growth) savings rates converge asymptotically to constants. © 2006 Elsevier Inc. All rights reserved.
LanguageEnglish
Pages213-229
Number of pages16
JournalJournal of Environmental Economics and Management
Volume53
Issue number2
DOIs
StatePublished - 2007

Fingerprint

savings
population growth
resource
resource depletion
elasticity
rate
Exhaustible resources
Saving rate
Population growth
Resource constraints
Maximin

Cite this

@article{887e95a90a1b4cefb1e3a1d376585ee4,
title = "Constant Savings Rates and Quasi-arithmetic Population Growth under Exhaustible Resource Constraints",
abstract = "In the Dasgupta-Heal-Solow-Stiglitz (DHSS) model of capital accumulation and resource depletion we show the following equivalence: if an efficient path has constant (gross and net of population growth) savings rates, then population growth must be quasi-arithmetic and the path is a maximin or a classical utilitarian optimum. Conversely, if a path is optimal according to maximin or classical utilitarianism (with constant elasticity of marginal utility) under quasi-arithmetic population growth, then the (gross and net of population growth) savings rates converge asymptotically to constants. {\circledC} 2006 Elsevier Inc. All rights reserved.",
author = "G. Asheim and W. Buchholz and J. Hartwick and T. Mitra and C.A.A.M. Withagen",
year = "2007",
doi = "10.1016/j.jeem.2006.09.001",
language = "English",
volume = "53",
pages = "213--229",
journal = "Journal of Environmental Economics and Management",
issn = "0095-0696",
publisher = "Academic Press Inc.",
number = "2",

}

Constant Savings Rates and Quasi-arithmetic Population Growth under Exhaustible Resource Constraints. / Asheim, G.; Buchholz, W.; Hartwick, J.; Mitra, T.; Withagen, C.A.A.M.

In: Journal of Environmental Economics and Management, Vol. 53, No. 2, 2007, p. 213-229.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Constant Savings Rates and Quasi-arithmetic Population Growth under Exhaustible Resource Constraints

AU - Asheim,G.

AU - Buchholz,W.

AU - Hartwick,J.

AU - Mitra,T.

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

PY - 2007

Y1 - 2007

N2 - In the Dasgupta-Heal-Solow-Stiglitz (DHSS) model of capital accumulation and resource depletion we show the following equivalence: if an efficient path has constant (gross and net of population growth) savings rates, then population growth must be quasi-arithmetic and the path is a maximin or a classical utilitarian optimum. Conversely, if a path is optimal according to maximin or classical utilitarianism (with constant elasticity of marginal utility) under quasi-arithmetic population growth, then the (gross and net of population growth) savings rates converge asymptotically to constants. © 2006 Elsevier Inc. All rights reserved.

AB - In the Dasgupta-Heal-Solow-Stiglitz (DHSS) model of capital accumulation and resource depletion we show the following equivalence: if an efficient path has constant (gross and net of population growth) savings rates, then population growth must be quasi-arithmetic and the path is a maximin or a classical utilitarian optimum. Conversely, if a path is optimal according to maximin or classical utilitarianism (with constant elasticity of marginal utility) under quasi-arithmetic population growth, then the (gross and net of population growth) savings rates converge asymptotically to constants. © 2006 Elsevier Inc. All rights reserved.

U2 - 10.1016/j.jeem.2006.09.001

DO - 10.1016/j.jeem.2006.09.001

M3 - Article

VL - 53

SP - 213

EP - 229

JO - Journal of Environmental Economics and Management

T2 - Journal of Environmental Economics and Management

JF - Journal of Environmental Economics and Management

SN - 0095-0696

IS - 2

ER -