Consumption, time and the environment

摘要

This paper combines a time-allocation approach with a model of economic dynamics, based on the accumulation of human capital, and constrained by the environment. Consumption is modelled as an activity, combining time and commodities, and embedded in the environment. An economic interpretation for a structural shortage of time in consumption activities is suggested. It is also shown, that the environmental embeddedness of consumption can contribute to restoring more balanced proportions of time and commodities in consumption. In a dynamic setting the paper also discusses the effects of discounting on consumption, the use of time and the environment. It is found that, within a certain range of the rate of discount, a ‘discounting trap’ may arise, significantly depressing the level of environmental quality in the long-run equilibrium.