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.
| Item Type: | Paper |
|---|---|
| Faculties: | Economics Economics > Chairs > Chair for Public Economics |
| Subjects: | 300 Social sciences > 330 Economics |
| Language: | English |
| Item ID: | 19600 |
| Date Deposited: | 15. Apr 2014 08:52 |
| Last Modified: | 29. Apr 2016 09:16 |
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