Conflicts between optimality and sustainability are typical in the literature on sustainable development. Using the “capital-resource” growth model, Pezzey and Withagen (1998, Scandinavian Journal of Economics <Emphasis Type="Bold">100 (2), 513–527) have proved that if natural resources are exhaustible, the...</emphasis>

This paper analyses a model in which botheconomic and ecological relationships as wellas all the interactions between the two arefully specified. It compares the short termand the long term effects of shocks inenvironmental policies. It appears that shortrun effects may differ substantially...