One-sided sustainability tests with amenities, and changes in technology, trade and population

John C.V. Pezzey

doi:10.1016/j.jeem.2003.10.002

One-sided sustainability tests with amenities, and changes in technology, trade and population

John C.V. Pezzey^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

81 Citations (Scopus)

Abstract

If an economy with multiple consumption goods (including environmental amenities) uniquely maximises present value with constant discounting, it is unsustainable at some time if either of two measures - augmented net investment, or the change in augmented green net national product - are zero or negative then. "Augmented" denotes that time is treated as a productive stock, which includes in each measure the value of future, exogenous changes in technology or terms of trade. Adjustments are found to make each measure a test for individual sustainability when population grows exogenously. The practical and philosophical rationale for testing sustainability in a present-value- maximising, and therefore fully prescribed, development path is discussed.

Original language	English
Pages (from-to)	613-631
Number of pages	19
Journal	Journal of Environmental Economics and Management
Volume	48
Issue number	1
DOIs	https://doi.org/10.1016/j.jeem.2003.10.002
Publication status	Published - Jul 2004

Access to Document

10.1016/j.jeem.2003.10.002

Cite this

@article{7cd9adf39b8f4cbcbfe9126f41abf8f7,

title = "One-sided sustainability tests with amenities, and changes in technology, trade and population",

abstract = "If an economy with multiple consumption goods (including environmental amenities) uniquely maximises present value with constant discounting, it is unsustainable at some time if either of two measures - augmented net investment, or the change in augmented green net national product - are zero or negative then. {"}Augmented{"} denotes that time is treated as a productive stock, which includes in each measure the value of future, exogenous changes in technology or terms of trade. Adjustments are found to make each measure a test for individual sustainability when population grows exogenously. The practical and philosophical rationale for testing sustainability in a present-value- maximising, and therefore fully prescribed, development path is discussed.",

keywords = "Green accounting, Green net national product, Net investment, Optimality, Population, Sustainability",

author = "Pezzey, {John C.V.}",

year = "2004",

month = jul,

doi = "10.1016/j.jeem.2003.10.002",

language = "English",

volume = "48",

pages = "613--631",

journal = "Journal of Environmental Economics and Management",

issn = "0095-0696",

publisher = "Academic Press Inc.",

number = "1",

}

TY - JOUR

T1 - One-sided sustainability tests with amenities, and changes in technology, trade and population

AU - Pezzey, John C.V.

PY - 2004/7

Y1 - 2004/7

N2 - If an economy with multiple consumption goods (including environmental amenities) uniquely maximises present value with constant discounting, it is unsustainable at some time if either of two measures - augmented net investment, or the change in augmented green net national product - are zero or negative then. "Augmented" denotes that time is treated as a productive stock, which includes in each measure the value of future, exogenous changes in technology or terms of trade. Adjustments are found to make each measure a test for individual sustainability when population grows exogenously. The practical and philosophical rationale for testing sustainability in a present-value- maximising, and therefore fully prescribed, development path is discussed.

AB - If an economy with multiple consumption goods (including environmental amenities) uniquely maximises present value with constant discounting, it is unsustainable at some time if either of two measures - augmented net investment, or the change in augmented green net national product - are zero or negative then. "Augmented" denotes that time is treated as a productive stock, which includes in each measure the value of future, exogenous changes in technology or terms of trade. Adjustments are found to make each measure a test for individual sustainability when population grows exogenously. The practical and philosophical rationale for testing sustainability in a present-value- maximising, and therefore fully prescribed, development path is discussed.

KW - Green accounting

KW - Green net national product

KW - Net investment

KW - Optimality

KW - Population

KW - Sustainability

UR - http://www.scopus.com/inward/record.url?scp=3042684774&partnerID=8YFLogxK

U2 - 10.1016/j.jeem.2003.10.002

DO - 10.1016/j.jeem.2003.10.002

M3 - Article

SN - 0095-0696

VL - 48

SP - 613

EP - 631

JO - Journal of Environmental Economics and Management

JF - Journal of Environmental Economics and Management

IS - 1

ER -

One-sided sustainability tests with amenities, and changes in technology, trade and population

Abstract

Access to Document

Other files and links

Fingerprint

Cite this