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- Title
On the Intergenerational Allocation of Natural Resources.
- Authors
Solow, Robert M.
- Abstract
It is known (Hartwick and others) that, under standard assumptions, a society that invests in reproducible capital the competitive rents on its current extraction of exhaustible resources, will enjoy a consumption stream constant in time. It is shown here that this result can be interpreted as saying that an appropriately defined stock of capital -- including the initial endowment of resources -- is being maintained intact, and that consumption can be interpreted as the interest on that patrimony. This seems like a useful rule of thumb for policy.
- Subjects
RESOURCE allocation; CONSUMPTION (Economics); CAPITAL; NATURAL resources
- Publication
Scandinavian Journal of Economics, 1986, Vol 88, Issue 1, p141
- ISSN
0347-0520
- Publication type
Article
- DOI
10.2307/3440280