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Depletion of Non-Renewable Resources and Endogenous Technical Change

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  • Juergen Antony

Abstract

Non-renewable resources are an obstacle for positive long run growth if they are essential for production, households solve an intertemporal Ramsey problem and population is growing. Modern growth models predict that growth is positively related to growth in production factors. Hence, there are opposing forces at work if labor as one factor is growing and the use of the non-renewable resource as another factor is shrinking. The paper develops a semi-endogenous growth model with one labor and one resource using sector and derives conditions for stable positive long run growth in per capita production and consumption.

Suggested Citation

  • Juergen Antony, 2007. "Depletion of Non-Renewable Resources and Endogenous Technical Change," Working Papers 027, Bavarian Graduate Program in Economics (BGPE).
    • Handle: RePEc:bav:wpaper:027_antony
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    References listed on IDEAS

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    Cited by:

    1. Voosholz, Frauke, 2014. "The influence of different production functions on modeling resource extraction and economic growth," CAWM Discussion Papers 72, University of Münster, Münster Center for Economic Policy (MEP).
    2. Tobias Kronenberg, 2008. "Should We Worry About The Failure Of The Hotelling Rule?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(4), pages 774-793, September.
    3. Maciej Malaczewski, 2018. "Natural Resources As An Energy Source In A Simple Economic Growth Model," Bulletin of Economic Research, Wiley Blackwell, vol. 70(4), pages 362-380, October.

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    More about this item

    Keywords

    Non-renewable resources; semi-endogenous growth;

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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