Population growth and natural resource scarcity: long-run development under seemingly unfavourable conditions

Lucas Bretschger

No 08/87, CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich

Abstract: The paper develops a model with non-exponential population growth, nonrenewable natural resources, and endogenous knowledge creation to analyse substitution between primary inputs and an essential use of resources in the innovation sectors, which is generally considered as most unfavourable for growth. We show that population growth and poor input substitution are not detrimental but even needed to obtain sustainable consumption. A permanent increase in living standards can be achieved under free market conditions. With a backstop technology, the system converges to a balanced growth path with classical properties.

Keywords: Population growth; non-renewable resources; poor input substitution; technical change; sustainability (search for similar items in EconPapers)
JEL-codes: Q32 Q55 Q56 O41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-ene, nep-env and nep-knm
Date: 2008-06
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Persistent link: http://EconPapers.repec.org/RePEc:eth:wpswif:08-87

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