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Satisficing versus optimality: criteria for sustainability

Author

Listed:
  • Michel de Lara

    (CERMICS - Centre d'Enseignement et de Recherche en Mathématiques et Calcul Scientifique - ENPC - École des Ponts ParisTech)

  • Vincent Martinet

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

  • Luc Doyen

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

Abstract

Economic analysis addresses risk and long-term issues with discounted expected utility, focusing on optimality. Viability theory is rooted on satisfying sustainability constraints over time, focusing on feasibility.We build a bridge between these two approaches by establishing that viability is equivalent to an array of degenerate intertemporal optimization problems. First, we focus our attention on the deterministic case. We highlight the connections between the viability kernel and the minimum time of crisis. Carrying on, we lay out stochastic viability, turning the spotlight onto the notions of viable scenario and maximal viability probability. Our conceptual results bring the viability approach closer to the economic approach, especially in the stochastic case and regarding efficiency. We discuss the possible use of viability as a theoretical framework for biodiversity conservation, ecosystem management and climate change issues.

Suggested Citation

  • Michel de Lara & Vincent Martinet & Luc Doyen, 2015. "Satisficing versus optimality: criteria for sustainability," Post-Print hal-01123050, HAL.
    • Handle: RePEc:hal:journl:hal-01123050
    DOI: 10.1007/s11538-014-9944-8
    Note: View the original document on HAL open archive server: https://hal.science/hal-01123050
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    Cited by:

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    4. Fleurbaey, Marc, 2015. "On sustainability and social welfare," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 34-53.

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