With E as some index of environmental quality and C1 and C2 as two ordinary commodities, consider
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With E as some index of environmental quality and C1 and C2 as two ‘ordinary’ commodities, consider the following utility functions in regard to whether C1 is non-essential and whether C1 and E are weak complements:
(a) U = E α + C1 β + C2 δ
(b) U = E α
C1 β
C2 δ
(c) U = E α
C1 β + C2 δ
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Natural Resource And Environmental Economics
ISBN: 9780273655596
3rd Edition
Authors: Roger Perman, Yue Ma, Michael Common, David Maddison, James Mcgilvray
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