Rule gives every generation same share of its best attainable welfare

A new research proposal presented at the 2026 European Control Conference in Reykjavík suggests a fair allocation rule for sharing nonrenewable resources across generations. This rule gives every generation the same fraction of its best possible welfare, ensuring each generation has access to a similar level of resources. The approach balances present needs with future generations' needs, without requiring agreement on a single social objective.

The key to this rule is calculating a benchmark for each generation, which represents the maximum lifetime benefit that could be achieved if consumption was tailored specifically to that generation's interests, while respecting the available resources and economic constraints. Each generation's actual welfare is then measured as a percentage of this benchmark. The fairness index is determined by the lowest percentage across all generations, and the fair allocation aims to maximize this minimum guarantee.

The resulting consumption plan has three requirements: consumption never increases over time, reflecting the opportunity cost of delaying resource use; the resource is fully utilized in the long run; and every generation receives the same fraction of its own benchmark welfare. This ensures equal relative achievement, meaning that improving one generation's welfare requires reducing another's, while maintaining efficiency.

The example provided shows that under this fair plan, each generation would receive approximately 84% of its own best attainable lifetime benefit. This percentage applies to various social objectives that prioritize higher welfare, treat generations equally, and do not reward inequality. These objectives include both utilitarian and egalitarian criteria.

The fair allocation is compared with the best outcomes achievable under these criteria, providing a common standard for evaluating performance while accommodating disagreements about social priorities.