Skip to main content
Article thumbnail
Location of Repository

The Hartwick Rule: Myths and Facts

By Geir B. Asheim and Wolfgang Buchholz

Abstract

We consider the Hartwick rule for capital accumulation and resource depletion, provide semantic clarifications and investigate whether this rule indicates sustainability and requires substitutability between manmade and natural capital. In addition to shedding light on the meaning of the Hartwick rule by reviewing established results, we establish the following novel finding: The value of net investments being negative does not imply that utility is unsustainable. Throughout we make the assumption of a constant technology, without which the Hartwick rule does not apply.Hartwick rule, natural resources, sustainability

OAI identifier:

Suggested articles

Citations

  1. (1998). Asheim
  2. (1979). Economic Theory and Exhaustible Resources,
  3. (1991). Indefinitely Sustained Consumption Despite Exhaustible Natural Resources',
  4. (1983). Intergenerational Equity and Efficient Allocation of Exhaustible Resources',
  5. (1974). Intergenerational equity and exhaustible resources',
  6. (1977). Intergenerational equity and the investing of rents from exhaustible resources',
  7. (1980). Intergenerational equity, a savings investment rule, and the efficient allocation of an exhaustible resource',
  8. (1995). Neoclassical economic growth theory and ‘sustainability’',
  9. (1994). Net national product as an indicator of sustainability',
  10. (1980). On Hartwick's rule for regular maximin paths of capital accumulation and resource depletion',
  11. (1999). On the welfare significance of national product for economic growth and sustainable develpment',
  12. (1978). Renewable Resources and Paradoxical Consumption Behavior,
  13. (1991). Sustainability as intergenerational equity: The challenge to economic thought and practice', Report no. IDP 97, the World Bank.
  14. (1995). Sustainable development, the Hartwick rule and optimal growth',
  15. (1986). The effect of the discount rate on the optimal exploitation of renewable resources',
  16. (1997). The maintenance of natural capital: Motivations and methods',
  17. (1974). The optimal depletion of exhaustible resources',
  18. (1994). The optimal sustainable depletion of nonrenewable resources, Discussion paper,
  19. (1998). The rise, fall and sustainability of capital-resource economies',

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.