The world budget constraint

The fact the resources of the earth are limited implies a budget constraint for the world economy, under the assumption of preserving the natural capital. Using recent data on the ecological footprint, the world product, and population, it is estimated that we are currently located in a non-feasible area. It is also estimated that if the present level of per capita product is to be sustained, the size of the world population must be reduced to 2.5 billion people. Given our natural resource endowment and the relationship between material income and happiness, suggested in recent research, there appears to be an obvious need for reconsidering our lifestyles, our consumption patterns, and our policies for population reduction.