Intergenerational equity and conservation

The issue of intergenerational equity in the use of natural resources is discussed in the context of coal mining conversion. More precisely, the authors attempt to determine if there is a clear-cut benefit to future generations in setting minimum coal extraction efficiency standards in mining. It is demonstrated that preserving fossil fuels beyond the economically efficient level is not necessarily beneficial to future generations even in terms of their own preferences. Setting fossil fuel conservation targets for intermediate products (i.e. energy) may increase the quantities of fossil fuels available to future generations and hence lower the costs, but there may be serious disadvantages to future generations as well. For example, the use of relatively inexpensive fossil fuels in this generation may result in more infrastructure development and more knowledge production available to future generations. The value of fossil fuels versus these other endowments in the future depends on many factors which we cannot possibly evaluate today. Thus, since we have no idea of whether we are helping or harming future generations, the authors recommend that intergenerational equity not be used as a factor in setting coal mine extraction efficiency standards, or in establishing requirements.