Cz. Li et Kg. Lofgren, Renewable resources and economic sustainability: A dynamic analysis with heterogeneous time preferences, J ENVIR EC, 40(3), 2000, pp. 236-250
In recent years there has been increasing interest in the study of economic
sustainability and its relationship with natural resources. This paper att
empts to shed some light on the issue by taking into account the individual
variations in time preferences for consumption and resource amenity. We ch
aracterize the long-run steady state, analyze its asymptotic stability, and
explore the transational dynamics from any initial state. The welfare impl
ications of the optimal path are also discussed. (C) 2000 Academic Press.