Abstract
Robson [1980] proved for a model with a single exhaustible resource costly innovation and no population growth that intergenerational equity is attainable if all rents from the resource are spent either for real capital formation or for innovative activity. However he seems to be in no doubt of the validity of his result for the case of population growth. Indeed he writes: The labor force is taken to be constant. Exponential growth does not cause substantial complications but it is possibly unreasonable in the present context if only for reasons of standing room. (Robson [1980 p. 190]) This paper analyzes whether Robsons result mentioned above is tenable in general when population growth is explicitly considered. It will be found that for the innovation mechanism formulated by Robson intergenerational equity will never be realized if labor is allocated to innovative activity at any time. Moreover a necessary and sufficient condition for intergenerational equity will be derived assuming a general innovation mechanism. (excerpt)
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