Hello Esteban !
Interesting topic! I just wanted to add a mere reference/comment on the topic you write about (not so closey related to the general equilibrium seen in class, but the topic you adress)
how coulld we model this sort of Economics of the Environment and more generally Sustainable Development?
A lot of literature has been written recently aiming to start a discussion whereas the neoclassical growth models are compatible with sustainability. Sustainaility defined as “the economic development activity that meets the needs of the present wothout compromising the ability of future generations to meet their own needs”.
What I wanted to share with you is how researches have approached this problem you present:
Higher endowments translate to higher depletion of natural resources., for example.
Eminencies Kenneth Arrow and Partha Dasgupta present a measurement of “Intergenerational Comprehensive Wealth” as the object of interest. Their presumption being wellbeing is not only social wellbeing today but also the potential welfare for the generations to follow.The point is to model whether the society is functioning in ways that would enable future generations to achieve a level of wellbeing at least as high as the current one. The determinants of the intergenerational well being are a multitude of stocks of capital (reproducible, human, natural, technological).
Of course everyone wants to do better that their parents, but can this be sustained?
What or who (and how) is contributing to ** intergenerational wealth** and not just income or GDP growth?
Is there such a thing as the steady state? Is it conceivable following our consumption patterns?
Was this interesting?
I think it is an amazing topic!