Implementing Intergenerational Equity in Goa

Abstract

Hartwick’s rule says that as mineral resources are extracted from the ground, investments in productive assets need to be made to leave future generations with as much assets as the present generation. This article examines whether mining in Goa meets Hartwick’s rule, and finds that the state government captures only a small fraction of the value of the iron ore extracted from mines it has leased out. It also finds that most of the value of the iron ore is cornered by mining leaseholders, resulting in a significant redistribution of wealth from the poor to the rich. It points to national and sub-national entities that follow Hartwick’s rule, and says there are many best practices that can be easily adopted by India.

Keywords: Goa, India, Mining, Mineral Depletion, Intergenerational Equity, Public Trust Doctrine, Law, Supreme Court, Constitution, Hartwick's Rule, Capture Rate, Adjusted Net Savings