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Over-exploitation of natural resources is followed by inevitable declines in economic growth and discount rate.

Abstract：

:A major challenge in environmental policymaking is determining whether and how fast our society should adopt sustainable management methods. These decisions may have long-lasting effects on the environment, and therefore, they depend critically on the discount factor, which determines the relative values given to future environmental goods compared to present ones. The discount factor has been a major focus of debate in recent decades, and nevertheless, the potential effect of the environment and its management on the discount factor has been largely ignored. Here we show that to maximize social welfare, policymakers need to consider discount factors that depend on changes in natural resource harvest at the global scale. Particularly, the more our society over-harvests today, the more policymakers should discount the near future, but the less they should discount the far future. This results in a novel discount formula that implies significantly higher values for future environmental goods.

journal_name

Nat Commun

journal_title

Nature communications

authors

Lampert A

doi

10.1038/s41467-019-09246-2

subject

Has Abstract

pub_date

2019-03-29 00:00:00

pages

1419

issue

1

issn

2041-1723

pii

10.1038/s41467-019-09246-2

journal_volume

10

pub_type

杂志文章

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