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The Hartwick Rule: Myths and Facts
Asheim,G.B. Buchholz,W. Withagen,C.A.A.M.
Asheim,G.B.
Buchholz,W.
Withagen,C.A.A.M.
Abstract
We shed light on the Hartwick rule for capital accumulation and resource depletion by providing semantic clarifications and investigating the implications and relevance of this rule.We extend earlier results by establishing that the Hartwick rule does not indicate sustainability and does not require substitutability between man-made and natural capital.We use a new class of simple counterexamples (i) to obtain the novel finding that a negative value of net investments need not entail that utility is unsustainable, and (ii) to point out deficiencies in the literature.
Description
Pagination: 24
Date
2002
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Publisher
Microeconomics
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52.pdf
Adobe PDF, 385.16 KB
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Keywords
natural resources, sustainable development, capital accumulation, D9 - Micro-Based Behavioral Economics, Q3 - Nonrenewable Resources and Conservation, Q01 - Sustainable Development
Citation
Asheim, G B, Buchholz, W & Withagen, C A A M 2002 'The Hartwick Rule : Myths and Facts' CentER Discussion Paper, vol. 2002-52, Microeconomics, Tilburg.