Research and development and sustainable growth over alternative types of natural resources

Thanh Le and Cuong Le Van

Economic Modelling, 2018, vol. 70, issue C, 215-229

Abstract: This paper develops an endogenous growth model to study how different types of natural resources - namely renewable versus non-renewable - affect sustainable growth and welfare. In a decentralized equilibrium setting, we find that negative growth may occur in an economy endowed with non-renewable resources. To escape from this stagnant growth, the research sector must be highly productive. However, non-renewable resources are not necessarily dominated by their renewable counterparts in terms of resulting output growth and welfare. We also characterize analytically and quantitatively equilibrium paths to evaluate growth and welfare implications resulting from a resource type switch that is caused by an adverse environmental shock.

Keywords: Non-renewable resources; Renewable resources; R&D-based growth; Stagnant growth; Vertical innovation (search for similar items in EconPapers)
JEL-codes: O13 O31 O41 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Research and development and sustainable growth over alternative types of natural resources (2018)
Working Paper: Research and development and sustainable growth over alternative types of natural resources (2018)
Working Paper: Research and development and sustainable growth over alternative types of natural resources (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:70:y:2018:i:c:p:215-229

DOI: 10.1016/j.econmod.2017.11.008

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