|Sinn, Hans-Werner (2007): Pareto optimality in the extraction of fossil fuels and the greenhouse effect: a note. CESifo Working Paper, 2083|
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 (Discussion Paper)|
Economics > Chairs > Chair for Public Economics
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 08:52|
|Last Modified:||29. Apr 2016 09:16|