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Vol. 53, No. 3, pp. 236-246 (2002)

“Exhaustible Resources, the Environment, and Sustainable Growth”
Kazumi Asako (The Institute of Economic Research, Hitotsubashi University), Satoshi Kawanishi (Faculty of Economics, Sophia University), Tetsuo Ono (Institute of Policy and Planning Sciences, University of Tsukuba)

In this paper we shall survey possibilities of sustained economic growth under the constraints on limited stocks of natural productive resources and on the maintenance of a clean environment. Our main concerns are, what is the desired course of economic growth in view of the equity among generations, and whether it is possible to attain such sustainable growth paths under the market mechanism. The results differ between the cases of exhaustible resources and of environmental destruction reflecting, respectively, the features of resource allocations without and with economic externality. We shall emphasize the balance between efficiency in resource utilization and equity of different generations.