28 March 2003

Interpreting Sustainability in Economic Terms

Sustainability ≡ Dynamic Efficiency + Intergenerational Equity

Green Growth Green Accounting Sustainability Research Economics Letters

Abstract:

Economists have confined the concept of ‘sustainability’ to intertemporal distributional equity. We propose a broader definition, combining dynamic efficiency and intergenerational equity, and relate it to two concepts from neoclassical economics: potential Pareto-improvements and inter-personal compensation.

Published paper: "Interpreting Sustainability in Economic Terms: Dynamic Efficiency Plus Intergenerational Equity" (full text)

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