Natural Resources and Sustainable Development

Yuli Radev

Ikonomiceski i Sotsialni Alternativi, 2014, issue 1, 30-37

Abstract: The present paper analyzes the contradictions between the conditions for efficiency and sustainability in macroeconomic literature of growth. Through the models of the optimal growth capital-natural resources Dasgupta and Heal (1974), Pezzey and Withangen (1998), Valente (2005) contested the Solow’s formula for sustainable development (1974), proving that if the resources are exhaustible, the consumption falls in the long term. The model presented in the paper adds value to these analyses as in parallel to depreciation and population growth, it takes in to account also the impact of technological progress over the resources as well as the renewability of these resources. The main conclusion is that a constant consumption can be sustained only while the sum of the discount rate and the population growth exceeds the sum from the coefficient of impact of technical progress and the rate of renewability of the resources. The capital depreciation has not influence over the conditions of sustainable development of economy

JEL-codes: E21 Q11 Q32 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:nwe:iisabg:y:2014:i:1:p:30-37

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