The connection between economic growth and the quality of the
environment is a popular subject. Since the second half of the
1980s, there has been an increasingly frequent use of the term
"sustainable development," to refer to the preoccupation that the
production of goods and services may decrease standards of living.
It is natural to analyze this question from the point of view of
economic models, which may be helpful in at least identifying the
main factors behind such preoccupations and perhaps in suggesting
policy measures. Indeed, models are useful to discuss some relevant
factors, like the structure of production of the economy, the type
of preferences and goals pursued by agents, and the elements of
uncertainty. This monograph will consider some of these themes:
there will be a study of the analytical framework which can be used
for the purpose of defining and analyzing sustainability, and some
discussion of how to calibrate a restricted version of the model to
empirical data. There will be also some analysis about which type
of uncertainty should be incorporated into the model, and which
objective functions may be useful for policy purposes. Also, there
will be discussions about the key variables which should be
included, and some description of a general framework.
General
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