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Category Archives: Sustainability
The Maximum Duration of Constant Consumption
At what rate should an essential non-renewable resource be depleted to sustain an economy for as long as possible? Suppose the inputs of a closed economy consist of produced capital, a non-renewable resource and labour . Output is of a … Continue reading
An Inconvenient Truth about the Hartwick Rule
The relevance to the Hartwick Rule of depreciation of produced capital is not widely understood. Suppose the inputs of a closed economy consist of produced capital K, a non-renewable resource R and labour L. It produces a single good which … Continue reading
A Difficulty in Assessing Sustainability
Long-term forecasting of the aggregate production function is essential for assessing sustainability, but very difficult. Is our current living standard sustainable? Or does depletion of non-renewable natural resources such as fossil fuels and metal ores mean that it must eventually … Continue reading
Net National Product and Sustainability
National product, calculated net of a deduction for depletion of natural resources, could in theory provide some indication of whether current consumption is permanently sustainable. But the conditions that would be needed to make net national product into a practical … Continue reading