Reconsideration of Dynamic Utility Optimisation and Intergenerational Equity in Sustainable Development Studies
Many sustainable development studies have employed intergenerational social welfare functions based on dynamic utility optimisation models (RCK models), which were pioneered by Ramsey and elaborated by Cass and Koopmans. This line of studies, however, rarely scrutinise the relevance of the fundamental assumption that dynamic optimisation in RCK models directly addresses intergenerational equity issues. This paper critically examines this assumption and presents an alternative interpretation: dynamic optimisation in RCK models signifies that an individual’s current utility level is determined not only by the activities and environments at this moment but also by future expectations about them. This interpretation leads us to reconsider treatment of intergenerational equity in sustainable development studies. This paper claims that intergenerational equity in sustainable development is better
represented as certain “survival conditions” rooted in physical facts instead of sustainability conditions based on value judgements. As one candidate of such survival conditions, an approach based on an ecological resilience concept is illustrated.
Disclaimer/Regarding indexing issue:
We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information.