Question

Distinguish between the concept of hicksian - sustainability and hartwick solow sustainability.​

Answer 1

Answer:

Note that “Hicksian sustainability”, which requires non-decreasing consumption — including consumption of environmental goods and services — is virtually equivalent to "Hartwick-Solow sustainability” defined in terms of maintaining the total capital stock of society. ... An economy is weakly sustainable if Z > 0.

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Answer 2

Hicksian Sustainability

• Hicksian sustainability, Weak sustainability acknowledges the concept of Hicksian income and defines non-decreasing consumption i.e, including consumption of environmental goods and services.
• It assumes maintenance of total capital stock regardless of proportions. Each kind of capital is assumed to be substitutable for others.

Hartwick-Solow Sustainability

• ‘Hartwick-Solow sustainability’ is defined in terms of maintaining non-declining per capita human welfare over time.
• It assumes to combine of efficiency and equity principles in development.

Hicks-Hartwick-Solow Weak

• Hicks-Hartwick-Solow weak sustainability by Sustainability Pearce and Atkinson (1995) state that

• Z = S/Y- dM/Y - dN/Y

• where Z is an index of sustainability,

• Y is GNP, S is (national) savings,

• dM is the rate of depreciation of man-made capital and dN is the rate of depreciation of natural capital.

• An economy is weakly sustainable if Z > 0.