Can the desire to conserve our natural resources be self-defeating?

Journal of Environmental Economics and Management

Volumn 49, Issue 1, 2005, Pages 52-67

  Smith, William ^a   Son, Young Seob ^a  

^a UNIVERSITY OF MEMPHIS   (United States)

Author keywords

Amenity value; Non renewable resource; Uncertainty

Indexed keywords

CONSERVATION; ENVIRONMENTAL IMPACT; MATHEMATICAL MODELS; RANDOM PROCESSES; RISK ASSESSMENT;

NON-STOCHASTIC MODELS; RESOURCE EXTRACTION; RISK AVERSION;

NATURAL RESOURCES;

AMENITY; CONSERVATION; NATURAL RESOURCE; RESOURCE DEPLETION; RESOURCE ECONOMY; RESOURCE MANAGEMENT;

EID: 10044221107     PISSN: 00950696     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jeem.2004.04.005     Document Type: Article

References (75)

1. R.J. Anderson A note on option value and the expected value of consumer surplus J. Environ. Econom. Manag. 8 1981 187 191
2. A. Atkeson, and M. Ogaki Wealth-varying intertemporal elasticities of substitution evidence from panel and aggregate data J. Mon. Econ. 38 1996 507 534
3. O. Attanasio, and G. Weber Intertemporal substitution, risk aversion, and the euler equation for consumption Econometrics J. 99 1989 59 73
4. O. Attanasio, and G. Weber Consumption growth the interest rate, and aggregation, Rev. Econ. Stud. 60 1993 411 445
5. G. Bakshi, and Z. Chen The spirit of capitalism and stock-market prices Amer. Econ. Rev. 86 1996 133 157
6. A. Beltratti, Models of Economic Growth With Environmental Assets, Fondazione Eni Enrico Mattei (FFEM) Series on Energy, Economics, and the Environment, Kluwer Academic Publishing, Dordrecht, 1996.
7. P. Bohm Option demand and consumer's surplus comment Amer. Econ. Rev. 65 1975 733 736
8. G. Bufman, and G. Leiderman Consumption and asset returns under non-expected utility Econ. Lett. 34 1990 231 235
9. J. Campbell, A. Lo, and A.C. MacKinlay The Econometrics of Financial Markets 1997 Princeton University Press Princeton, NJ
10. S. Chaterjee, P. Guiliano, S. Turnovsky, Capital income taxes and growth in a stochastic economy: a numerical example of the role of risk aversion and intertemporal substitution, Working Paper, University of Georgia, 2001.
11. C.J. Cicchetti, and A.M. Freeman Option demand and consumer surplus further comment Quart. J. Econ. 85 1971 538 539
12. P. Dasgupta, G.M. Heal, The Optimal Depletion of Exhaustible Resources, Review of Economic Studies, Symposium on the Economics of Exhaustible Resources, 1974, pp. 3-28.
13. A. Deaton Understanding Consumption 1992 Clarendon Press Oxford
14. G. Debreu Least concave utility functions J. Math. Econ. 8 1976 353 394
15. D. Duffie, and L. Epstein Stochastic differential utility Econometrica 60 1992 353 394
16. D. Duffie, and L. Epstein Asset pricing with stochastic differential utility Rev. Finan. Stud. 5 1992 411 436
17. A. Epaulard, and A. Pommeret Recursive utility, endogenous growth, and the welfare cost of volatility Rev. Econ. Dynam. 6 2003 672 684
18. A. Epaulard, and A. Pommeret Optimally eating a stochastic cake, a recursive utility approach Res. Energy Econ. 25 2003 129 139
19. L. Epstein Risk Aversion and Asset Prices J. Monet. Econ. 22 1988 179 192
20. L. Epstein, and S. Zin Substitution, risk aversion, and the temporal behavior of consumption and asset returns a theoretical framework Econometrica 57 1989 937 969
21. L. Epstein, and S. Zin Substitution, risk aversion, and the temporal behavior of consumption and asset returns an empirical analysis J. Polit. Economy 99 1991 263 286
22. Y.H. Farzin The effect of the discount rate on depletion of exhaustible resources J. Polit. Economy 92 1984 841 851
23. I. Friend, and M. Blume The demand for risky assets Amer. Econ. Rev. 65 1975 900 922
24. P.C. Garg, and J.L. Sweeney Optimal Growth with depletable resources Resource Energy 1 1978 43 56
25. G. Gaudet, and A.M. Kadhr The evolution of natural resource prices under stochastic investment opportunities an intertemporal asset-pricing approach Int. Econ. Rev. 32 1991 441 455
26. R. Gilbert Optimal depletion of an uncertain stock Rev. Econ. Stud. 46 1976 47 57
27. C. Gollier The Economics of Risk and Time 2001 MIT Press Cambridge, MA
28. L. Gong, and H. Zou Money, social status, and capital accumulation in a cash-in-advance model J. Money Credit Banking 33 2001 284 293
29. L. Gong, and H. Zou Direct Preferences for wealth, the risk premium puzzle, growth, and policy effectiveness J. Econ. Dynam. Control 26 2002 247 270
30. P. Guiliano, and S. Turnovsky Intertemporal substitution, risk aversion, and economic performance in a stochastically growing economy J. Int. Money Finance 59 2003 267 295
31. R. Hall Intertemporal substitution in consumption J. Polit. Economy 96 1988 339 357
32. L. Hansen, and K. Singleton Stochastic consumption, risk aversion, and the temporal behavior of stock market returns J. Polit. Econom. 91 1983 249 265
33. S. Kandel, and R. Stambaugh Asset returns and intertemporal preferences J. Monet Econ. 27 1991 39 73
34. M.C. Kemp, How to eat a cake of unknown size, in: Three Topics in the Theory of International Trade: Distribution, Welfare, and Uncertainty, North-Holland, Amsterdam, 1976.
35. R. Khilstrom, and L. Mirman Risk aversion with many commodities J. Econ. Theory 8 1974 361 368
36. R. Khilstrom, and L. Mirman Constant, increasing, and decreasing risk aversion with many commodities Rev. Econ. Stud. 48 1981 271 280
37. M.S. Kimball Precautionary saving in the small and in the large Econometrica 58 1990 53 73
38. K. Knapp, and L. Olson Dynamic resource management intertemporal substitution in risk aversion Amer. J. Agri. Econ. 78 1996 1004 1114
39. C.D. Kolstad, and J.A. Krautkraemer Natural Resource Use and the Environment A. Kneese J.L. Sweeney The Handbook of Natural Resource and Energy Economics Vol. 3 1993 Elsevier Amsterdam (Chapter 20)
40. T.C. Koopmans Some observations on 'Optimal' economic growth and exhaustible resources H.C. Bos H. Linemannn P. Wolf Economic Structure and Development 1973 North-Holland Amsterdam
41. J.M. Koskievic An intertemporal model of consumption/leisure with non-expected utility preferences Econ. Lett. 64 1999 285 289
42. D.M. Kreps A Course in Microeconomic Theory 1990 Princeton University Press Princeton, NJ
43. D.M. Kreps, and E.L. Porteus Temporal resolution of uncertainty and dynamic choice theory Econometrica 46 1978 185 200
44. J.A. Krautkraemer Optimal growth, resource amenities, and the preservation of natural environments Rev. Econ. Stud. 52 1985 153 170
45. J.V. Krutilla Conservation reconsidered Amer. Econ. Rev. 57 1967 777 786
46. J.V. Krutilla, and A.C. Fischer The Economics of Natural Environments Studies in the Valuation of Commodity and Amenity Resources 1975 Johns Hopkins Press Baltimore, MD
47. G.C. Loury The optimal exploitation of an unknown reserve Rev. Econ. Stud. 45 1978 621 636
48. N.G. Mankiw, and M. Shapiro Risk and return consumption beta versus market beta Rev. Econ. Stat. 68 1986 452 459
49. R. Mehra, and E. Prescott The equity premium a puzzle J. Monet. Econ. 15 1985 145 161
50. R.C. Merton Lifetime portfolio selection under uncertainty the continuous-time case Rev. Econ. Stat. 51 1969 247 257
51. R.C. Merton Optimum Consumption and portfolio policies in continuous-time models J. Econ. Theory 3 1971 373 413
52. R.C. Merton An asymptotic theory of growth under uncertainty Rev. Econ. Stud. 42 1975 375 393
53. M. Obstfeld Risk-taking, global diversification, and growth Amer. Econ. Rev. 84 1994 1310 1329
54. R.S. Pindyck Uncertainty and exhaustible resource markets J. Polit. Economy 83 1980 1203 1225
55. G. Ramey, and V.A. Ramey Cross-country evidence on the link between volatility and growth Amer. Econ. Rev. 85 1995 1138 1151
56. R.C. Ready Environmental Valuation under Uncertainty D.W. Bromley The Handbook of Environmental Economics 1995 Blackwell Oxford (Chapter 25)
57. B. Rowthorn, and G. Brown When a high discount rate encourages biodiversity Int. Econ. Rev. 40 1999 315 332
58. R. Schmalensee Option demand and consumer's surplus valuing price changes under uncertainty Amer. Econ. Rev. 62 1972 813 824
59. L. Selden A new representation of preferences over certain x uncertain consumption paths the ordinal equivalent hypothesis Econometrica 46 1978 1045 1060
60. L. Selden An OCE analysis of the effect of uncertainty on saving under risk independence Rev. Econ. Stud. 46 1979 73 82
61. W.T. Smith Taxes, uncertainty, and long-term growth Europ. Econ. Rev. 40 1996 1647 1664
62. W.T. Smith Feasibility and transversality conditions for models of portfolio choice with non-expected utility in continuous-time Econ. Lett. 30 1996 123 131
63. W.T. Smith Risk, the spirit of capitalism and growth the implications of a preference for capital J. Macroecon 21 1999 241 262
64. W.T. Smith How does the spirit of capitalism affect stock-market prices? Rev. Finan. Stud. 14 2001 1215 1232
65. R. Solow, Intergenerational equity and exhaustible resources, Review of Economic Studies, Symposium on the Economics of Exhaustible Resources (1974) 29-45.
66. J. Stiglitz, Growth with exhaustible natural resources: efficient and optimal growth paths, Review of Economic Studies, Symposium on the Economics of Exhaustible Resources 1974, pp. 123-137.
67. L. Svensson Portfolio choice with non-expected utility in continuous-time Econ. Lett. 30 1989 313 347
68. J.L. Sweeney Economics of depletable resources market forces and intertemporal bias Rev. Econ. Stud. 44 1977 125 141
69. T.D. Tallarini Risk-sensitive real business cycles J. Mon. Econ. 45 2000 27 42
70. S.J. Turnovsky Methods of Macroeconomic Dynamics 1999 MIT Press Cambridge, MA
71. N. Vousden Basic theoretical issues in resource depletion J. Econ. Theory 6 1973 126 143
72. P. Weil The equity premium puzzle and the risk-free rate puzzle J. Monet. Econ. 24 1989 401 421
73. P. Weil Nonexpected utility in macroeconomics Quart. J. Econ. 105 1990 29 42
74. H. Zou 'The spirit of capitalism'and long-run growth Europ. J. Polit. Economy 10 1994 279 293
75. H. Zou The spirit of capitalism and savings behavior J. Econ. Behav. Organ. 28 1995 131 143