Document Zbl 1276.91089

Intergenerational equity, efficiency, and constructibility. (English) Zbl 1276.91089

Econ. Theory 49, No. 2, 227-242 (2012).

Summary: Global environmental issues – like biodiversity conservation or climate change – are in reality long-term issues that are not properly taken into account with traditional models that incorporate the impatience axiom manifested in fixed discount factors and in the use of present discounted utility criteria. When both the short and the very long run are important, one can appeal to overtaking criteria and Chichilnisky criteria. Unfortunately, overtaking criteria are highly incomplete. In order to decrease this incompleteness, stronger anonymity (or equity) axioms were developed. I show that a maximal anonymity axiom compatible with Pareto is a non-constructible object; its existence relies on the axiom of choice. The Chichilnisky criterion is based upon two axioms: non-dictatorship of the present and non-dictatorship of the future. Here, the very long run is captured by a finitely additive measure. Such a measure is a non-constructible object and has therefore no explicit description.

Cited in 27 Documents

MSC:

91D10	Models of societies, social and urban evolution
91B62	Economic growth models
91B76	Environmental economics (natural resource models, harvesting, pollution, etc.)

Keywords:

intergenerational justice; sustainability; Chichilnisky’s criterion; overtaking; axiom of choice

Cite Review PDF

Full Text: DOI Link

References:

[1]	Alvarez-Cuadrado F., Van Long N.: A mixed Bentham-Rawls criterion for intergenerational equity: theory and implications. J. Environ. Econ. Manag. 58, 154–168 (2009) · Zbl 1194.91112 · doi:10.1016/j.jeem.2009.04.003
[2]	Asheim G.B.: Intergenerational equity. Annu. Rev. Econ. 2, 197–222 (2010) · doi:10.1146/annurev.economics.102308.124440
[3]	Asheim, G.B., d’Aspremont, C., Banerjee, K.: Generalized time-invariant overtaking. J. Math. Econ. (2010). doi: 10.1016/j.jmateco.2010.03.005 · Zbl 1232.91202
[4]	Asheim G.B., Banerjee K.: Fixed-step anonymous overtaking and catching up. Int. J. Econ. Theory 6, 149–165 (2010) · doi:10.1111/j.1742-7363.2009.00127.x
[5]	Asheim G.B., Mitra T.: Sustainability and discounted utilitarianism in models of economic growth. Math. Soc. Sci. 59, 148–169 (2010) · Zbl 1202.91194 · doi:10.1016/j.mathsocsci.2009.08.003
[6]	Asheim, G.B., Mitra, T., Tungodden, B.: Sustainable recursive social welfare functions. Econ. Theory (2011, this issue). doi: 10.1007/s00199-010-0573-7 · Zbl 1277.91051
[7]	Ax J.: The elementary theory of finite fields. Ann. Math. 88, 239–271 (1968) · Zbl 0195.05701 · doi:10.2307/1970573
[8]	Banerjee K.: On the extension of the utilitarian and Suppes-Sen social welfare relations to infinite utility streams. Soc. Choice Welf. 27, 327–339 (2006) · Zbl 1138.91389 · doi:10.1007/s00355-006-0135-x
[9]	Burniaux, J.-M., Martins, J.O.: Carbon leakages: a general equilibrium view. Econ. Theory (2011, this issue). doi: 10.1007/s00199-010-0598-y · Zbl 1276.91081
[10]	Chambers C.P.: Intergenerational equity: sup, inf, lim sup, and lim inf. Soc. Choice Welf. 32, 243–252 (2009) · Zbl 1167.91344 · doi:10.1007/s00355-008-0321-0
[11]	Chichilnisky G.: An axiomatic approach to sustainable development. Soc. Choice Welf. 13, 231–257 (1996) · Zbl 0846.90005 · doi:10.1007/BF00183353
[12]	Chichilnisky G.: The topology of fear. J. Math. Econ. 45, 807–816 (2009) · Zbl 1180.91104 · doi:10.1016/j.jmateco.2009.06.006
[13]	Chichilnisky G.: Avoiding extinction: equal treatment of the present and the future. Open Access Open Assess. E J. 3, 2009–2032 (2009)
[14]	Chichilnisky, G.: Sustainable markets with short sales. Econ. Theory (2011, this issue) · Zbl 1277.91120
[15]	Chipman, J.S., Tian, G.: Detrimental externalities, pollution rights, and the ”Coase theorem”. Econ. Theory (2011, this issue). doi: 10.1007/s00199-011-0602-1 · Zbl 1276.91082
[16]	Dianonescu R.: Axiom of choice and complementation. Proc. Am. Math. Soc. 51, 176–178 (1975) · Zbl 0317.02077 · doi:10.1090/S0002-9939-1975-0373893-X
[17]	Dutta, P.K., Radner, R.: Capital growth in a global warming model: will China and India sign a climate treaty? Econ. Theory (2011, this issue). doi: 10.1007/s00199-010-0590-6 · Zbl 1276.91083
[18]	Figuières, C., Tidball, M.: Sustainable exploitation of a natural resource: a satisfying use of Chichilnisky’s criterion. Econ. Theory (2011, this issue). doi: 10.1007/s00199-010-0579-1 · Zbl 1276.91049
[19]	Fleurbaey M., Michel P.: Intertemporal equity and the extension of the Ramsey criterion. J. Math. Econ. 39, 777–802 (2003) · Zbl 1046.91104 · doi:10.1016/S0304-4068(03)00054-5
[20]	Fraenkel A.A., Bar-Hillel Y., Levy A.: Foundation of Set Theory. North Holland, Amsterdam (1973) · Zbl 0248.02071
[21]	Halbeisen L., Löwe B.: Ultrafilter spaces on the semilattice of partitions. Topol. Appl. 115, 317–332 (2001) · Zbl 0994.54030 · doi:10.1016/S0166-8641(00)00068-7
[22]	Hall M. Jr.: The Theory of Groups. Chelsea Publishing Company, New York (1976)
[23]	Heal G.M.: Valuing the Future: Economic Theory and Sustainability. Columbia University Press, New York (1998)
[24]	Jech T.J.: The Axiom of Choice. North-Holland, Amsterdam (1973) · Zbl 0259.02051
[25]	Kamaga K., Kojima T.: $${$\backslash$mathcal Q}$$ -anonymous social welfare relations on infinite utility streams. Soc. Choice Welf. 33, 405–413 (2009) · Zbl 1190.91060 · doi:10.1007/s00355-009-0366-8
[26]	Kamaga K., Kojima T.: On the Leximin and Utilitarian Criteria with Extended Anonymity. Waseda University, Tokyo (2009) · Zbl 1232.91194
[27]	Karp, L., Zhang, J.: Taxes versus quantities for a stock pollutant with endogenous abatement costs and asymmetric information. Econ. Theory (2011, this issue). doi: 10.1007/s00199-010-0561-y · Zbl 1276.91084
[28]	Lauwers L.: Infinite utility: insisting on strong monotonicity. Australas. J. Philos. 75, 222–233 (1997) · doi:10.1080/00048409712347831
[29]	Lauwers L.: Ordering infinite utility streams comes at the cost of a non-Ramsey set. J. Math. Econ. 46, 32–37 (2010) · Zbl 1197.91085 · doi:10.1016/j.jmateco.2009.06.007
[30]	Lauwers L.: Purely Finitely Additive Measures are Non-Constructible Objects. DPS 1010 Center for Economic Studies, K.U.Leuven (2010)
[31]	Lecocq, F., Hourcade, J.-C.: Unspoken ethical issues in the climate affair, insights from a theoretical analysis of negotiation mandates. Econ. Theory (2011, this issue). doi: 10.1007/s00199-010-0589-z · Zbl 1277.91144
[32]	Li C.-Z., Löfgren K.-G.: Renewable resources and economic sustainability: a dynamic analysis with heterogeneous time preferences. J. Environ. Econ. Manag. 40, 236–250 (2000) · Zbl 0964.91026 · doi:10.1006/jeem.1999.1121
[33]	Mathias A.R.D.: Happy families. Ann. Pure Appl. Log. 12, 59–111 (1977) · Zbl 0369.02041
[34]	Mitra T., Basu K.: On the existence of Paretian social welfare relations for infinite utility streams with extended anonymity. In: Roemer, J., Suzumura, K. (eds) Intergenerational Equity and Sustainability, pp. 85–99. Palgrave, London (2007)
[35]	Ostrom, E.: Nested externalities and polycentric institutions: must we wait for global solutions to climate change before taking actions at other scales? Econ. Theory (2011). doi: 10.1007/s00199-010-0558-6 · Zbl 1276.91086
[36]	Rao R.R.: A note on finitely additive measures. Indian J. Stat. 19, 27–28 (1958) · Zbl 0082.26503
[37]	Rezai, A., Foley, D.K., Taylor, L.: Global warming and economic externalities. Econ. Theory (2011). doi: 10.1007/s00199-010-0592-4 · Zbl 1277.91135
[38]	Yosida K., Hewitt E.: Finitely additive measures. Trans. Am. Math. Soc. 72, 46–66 (1952) · Zbl 0046.05401 · doi:10.1090/S0002-9947-1952-0045194-X
[39]	Zame W.: Can intergenerational equity be operationalized? Theor. Econ. 2, 187–202 (2007)

This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.