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Sustainable water resource and endogenous economic growth

Ning Zhang (), Tao Wu, Bing Wang, Liang Dong and Jingzheng Ren

Technological Forecasting and Social Change, 2016, vol. 112, issue C, 237-244

Abstract: Poyang Lake suffers from a severe shortage of water, due to the construction of the Three Gorges Dam and other hydropower stations along the upper Yangtze River. In this paper, we propose a two-sector endogenous growth model to investigate the effects of extractive water use and impoundment activities on the optimal sustainable growth path. To offset the negative impact of the extractive use on the regenerative capacities of water resources, the impoundment activities should grow at a constant rate. We also provide a numerical example to illustrate the mechanisms of the endowment and the regenerative capacities of water resources on the long-run economic growth path. We find out some theoretical evidence to support the construction of a water conservancy project to restore regeneration capacities of Poyang Lake.

Keywords: Endogenous economic growth; Renewable water resources; Poyang Lake; Extractive use; Impoundment activities; Water sustainability (search for similar items in EconPapers)
Date: 2016
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Working Paper: Sustainable water resource and endogenous economic growth (2015) Downloads
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DOI: 10.1016/j.techfore.2016.05.004

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