{"216601":{"#nid":"216601","#data":{"type":"event","title":"Intergenerational Risks and Natural Capital Conservation: A Recursive Weighting Matrix Approach","body":[{"value":"\u003Cp class=\u0022p1\u0022\u003E\u003Cstrong\u003EAbstract:\u003C\/strong\u003E\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003EThis paper addresses intergenerational risk issues inherent in making natural capital conservation decisions. It is assumed that the evolution of natural capital stocks is subject to stochastic shocks over time, and that each generation is endowed with a recursive utility. I show that optimal conservation decisions over time involve a balancing of risks between current generation and future generations characterized by a time-varying symmetric weighting matrix, whose elements are related to the shapes of the intertemporal exibility at the margin. A major new insight is that, in contrast to the widespread way of thinking, conservation policies based on time-additive utility will lead to recommendations that actually do not allow risk sharing between currentand future generations as a whole. In addition, it is shown that whether or not intergenerational risks lead to more or less conservation depends on the sign of the weighting matrix over time.\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003E\u0026nbsp;\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u003Cstrong\u003ESpeaker Bio:\u003C\/strong\u003E\u003C\/p\u003E\u003Cp class=\u0022p5\u0022\u003E\u003Ca href=\u0022http:\/\/www.prism.gatech.edu\/~jkakeu6\/\u0022\u003EJohnson Kakeu\u003C\/a\u003E is a Visiting Assistant Professor at the School of Economics at Georgia Tech. He holds a Ph.D. in Economics from University of Montreal (Canada), a Master\u2019s in Statistics and Economics, and a Master\u2019s in Applied Mathematics and Mechanics. His research interests include Environment and Natural Resources, Sustainability and Risk Management, Exhaustibility and Capital Markets,\u0026nbsp; Economic Growth, Applied Econometrics, and Applied Game theory. Before joining Georgia Tech, he has taught at University of Montreal, HEC Montreal, \u00c9TS Montreal, University of Douala (Cameroon), School of Administration and Magistracy (Cameroon).\u003C\/p\u003E","summary":null,"format":"limited_html"}],"field_subtitle":"","field_summary":"","field_summary_sentence":"","uid":"27469","created_gmt":"2013-06-05 16:46:05","changed_gmt":"2016-10-08 02:03:41","author":"Kristen Bailey","boilerplate_text":"","field_publication":"","field_article_url":"","field_event_time":{"event_time_start":"2013-06-12T11:00:00-04:00","event_time_end":"2013-06-12T12:00:00-04:00","event_time_end_last":"2013-06-12T12:00:00-04:00","gmt_time_start":"2013-06-12 15:00:00","gmt_time_end":"2013-06-12 16:00:00","gmt_time_end_last":"2013-06-12 16:00:00","rrule":null,"timezone":"America\/New_York"},"extras":[],"groups":[{"id":"1316","name":"Green Buzz"}],"categories":[],"keywords":[{"id":"479","name":"Green Buzz"}],"core_research_areas":[],"news_room_topics":[],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[],"email":[],"slides":[],"orientation":[],"userdata":""}}}