SUSTAINABILITY, CONSUMPTION, AND TECHNOLOGY
DOI:
https://doi.org/10.12775/CJFA.2016.012Keywords
sustainability, technology, consumption, optimal control theory, economic development, natural resourcesAbstract
Sustainability of current economic system is analyzed in the face of growing population, accelerating exploitation of limited natural resources, and advances in technology. A Cobb-Douglas type of production function is assumed. Optimal control theory is employed to model the problem. It is proved that long term sustainability is possible, with or without population growth, only under certain conditions related to production and utility functions of the society.
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