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The Role of Conservation Capital in Developing Economies: A Static General Equilibrium Analysis with Dynamics

In: Economic, Environmental and Health Consequences of Conservation Capital

Author

Listed:
  • Tonmoy Chatterjee

    (Bhairab Ganguly College)

  • Nilendu Chatterjee

    (Bankim Sardar College)

Abstract

Conservation Capital, one of the important aspects of sustainable development and biodiversity protection, have been gaining immense popularity as more and more nations have started to realize its importance and necessity. In the present chapter, by the help of a general equilibrium framework, an attempt has been made to capture the impacts of conservation capital inflow on the economy through both theoretical and empirical means. Conservation capital may be invested in one or more than economic sector. It is assumed that it flows in either in rural or in manufacturing sector but consequential effects are seen on the whole economy. The study has emphasized upon both the short-run and long-run dynamic scenarios. It is observed that, in the short-run, conservation capital comes as an inflow from outside sources through technology transfer but in the long-run a nation becomes self-dependent to invest. In the short-run it has impact on the economy based on Stolper–Samuelson effects and Rybczynski effects but the long-run equilibrium is stable only if the conservation capital is being invested in the rural sector and not in urban sector.

Suggested Citation

  • Tonmoy Chatterjee & Nilendu Chatterjee, 2023. "The Role of Conservation Capital in Developing Economies: A Static General Equilibrium Analysis with Dynamics," Springer Books, in: Ramesh Chandra Das (ed.), Economic, Environmental and Health Consequences of Conservation Capital, chapter 0, pages 3-14, Springer.
    • Handle: RePEc:spr:sprchp:978-981-99-4137-7_1
    DOI: 10.1007/978-981-99-4137-7_1
    as

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