 Economic and environmental effects under resource scarcity and substitution between renewable and non-renewable resourcesSusana Silva, Isabel Soares and Oscar Afonso Energy Policy, 2013, vol. 54, issue C, 113-124 Abstract: We build a general equilibrium model with renewable (non-polluting) and non-renewable (polluting) resources to analyze the interaction and compatibility between economic growth and a cleaner environment. The study is in two phases: (i) resource extraction/production costs are constant; (ii) resource producers invest in knowledge to reduce extraction/production costs, endogenizing technical change. With constant costs, there is a permanent trade-off between economic growth and a cleaner environment. With endogenous technical change, it is possible to harmonize more output and less emissions by replacing non-renewable resources for renewable ones. We also conduct a sensitivity analysis to explore three specific policy actions. With constant costs, the best policy action is the imposition of a higher renewable resources standard, while with endogenous technical change, under certain conditions, all policy interventions may benefit both the economy and the environment. Keywords: Renewable and non-renewable resources; Pollution; Economic growth (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:54:y:2013:i:c:p:113-124 DOI: 10.1016/j.enpol.2012.10.069 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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