Genuine dissaving and optimal growth

Green accounting theories have shown that negative genuine sav-ings at some point in time imply unsustainability. Consequently, recent studies advocate the use of the genuine savings measure for empirical testing: a negative index implies that sustainability is rejected. This criterion is not forward-looking: positive current genuine savings do not rule out ’genuine dissaving ’ in the future. This paper derives a one-to-one relationship between the sign of long-run genuine savings and the limiting sustainability condition in the capital-resource model assuming technical progress and resource renewability. Testing the limiting condition allows us to reveal whether current genuine savings are delivering a false message