Sustainability, limited substitutability, and non-constant social discount rates
نویسنده
چکیده
The paper shows how limited substitutability in consumption between different classes of goods affects the magnitude and time development of social discount rates. It decomposes the discount rates into an absolute growth and a relative growth or substitutability effect. The paper relates between-good and intertemporal substitutability to the notions of weak and strong sustainability. It analyzes under which circumstances low as opposed to high between-good substitutability increases the weights given to long-run environmental services. & 2011 Elsevier Inc. All rights reserved.
منابع مشابه
Reconciling sustainability, systems theory and discounting
Article history: Received 12 May 2006 Received in revised form 6 October 2006 Accepted 9 October 2006 Available online 30 November 2006 Most definitions of sustainability imply that a system is to be maintained at a certain level, held within certain limits, into the indefinite future. Sustainability denies run-away growth, but it also avoids any decline or destruction. This sustainability path...
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