Sustainability in Uncertain Economies

A stochastic growth model with a list of capital assets (i.e., reproducible capital, non-renewable resources, the knowledge base and institutions) is studied to evaluate the effects of different sources of uncertainty on sustainability. It is also discussed which measure can serve as an index of intergenerational welfare to evaluate sustainable development under uncertainty. The aim is to consider a more comprehensive setting than is usually explored in the literature and to generalize Arrow, Dasgupta and Mäler results to the case of uncertainty.