This paper develops and rigorously analyses a model describing the optimal use of natural capital in a utilitarian framework. Natural capital is treated as an aggregate including exhaustibles, renewables and 'environmentals', performing several functions. It is found that it converges to a steady-state in which it is kept constant by simultaneous investments and use. (C) 2000 Elsevier Science B.V. All rights reserved.
机构:
Univ Cattolica Sacro Cuore, Postgrad Sch Business & Soc, ALTIS, Via San Vittore, Milan, ItalyUniv Cattolica Sacro Cuore, Postgrad Sch Business & Soc, ALTIS, Via San Vittore, Milan, Italy