On technical change in the elasticities of resource inputs

Jakub Growiec and Ingmar Schumacher

Resources Policy, 2008, vol. 33, issue 4, 210-221

Abstract: This article analyses growth of an economy where the substitutability between non-renewable and renewable resource inputs changes over time. We allow for exogenous technical change in the elasticity of substitution (EoS) between these two types of resources as well as for biased factor-augmenting technical change. Our main results are: (1) sustained technical change in the EoS is enough to overcome resource constraints; (2) productivity-enhancing technical change is most beneficial when directed to the resource which is currently most important for production; (3) the speed of productivity-enhancing technical change is crucial for its usefulness to overcome resource constraints; (4) sustainability depends critically on the type of technical change.

Keywords: Elasticity; of; substitution; Technical; change; Biased; technical; change; Non-renewable; resources; Renewable; resources (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (14)

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Related works:
Working Paper: On technical change in the elasticities of resource inputs (2006)
Working Paper: On Technical Change in the Elasticities of Resource Inputs (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:33:y:2008:i:4:p:210-221

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