The green golden rule: Habit and anticipation of future consumption

C-Tier
Journal: Economics Letters
Year: 2018
Volume: 172
Issue: C
Pages: 131-133

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We derive the Green Golden Rule (GGR) in the Habit Formation (HF) and Anticipation of Future Consumption (AFC) frameworks. Since consumption is the key variable of GGR, time non-separabilities in preferences over consumption streams, given by the AFC and HF, may have important impacts on the environment and sustainability. We demonstrate that agents who smooth their consumption patterns, according to the HF hypothesis, are more likely to preserve the environment than those who anticipate future consumption or who do not so smooth consumption.

Technical Details

RePEc Handle
repec:eee:ecolet:v:172:y:2018:i:c:p:131-133
Journal Field
General
Author Count
2
Added to Database
2026-01-25