Growth and convergence in a model with renewable and non-renewable resources: existence, transitional dynamics, and empirical evidence

Phu Nguyen-Van and Phu Nguyen Van ()
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Phu Nguyen Van: BETA, CNRS and Université de Strasbourg
Authors registered in the RePEc Author Service: Manh Hung Nguyen

No 7, Working Papers from Development and Policies Research Center (DEPOCEN), Vietnam

Abstract: This paper studies an optimal endogenous growth model using physical capital, labor and two kinds of natural resources in the final goods sector and employing labor to accumulate knowledge. Based on results in calculus of variations, a direct proof of existence of optimal solution is provided. Analytical solutions for the planner case and the balanced growth paths are found for a specific CRRA utility and Cobb-Douglas production function. Transitional dynamics to the steady state from the theoretical model are used to derive three convergence equations of output intensity growth rate, exhaustible resource growth rate and renewable growth rate, which are tested based on data on production and energy consumption in 27 OECD countries.

Keywords: Optimal growth; existence of equilibrium; transitional dynamics; energy; renewable resource; non-renewable resource. (search for similar items in EconPapers)
JEL-codes: C61 D51 E13 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2011
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Related works:
Working Paper: Growth and convergence in a model with renewable and non-renewable resources: existence, transitional dynamics, and empirical evidence (2010)
Working Paper: Growth and convergence in a model with renewable and non-renewable resources: existence, transitional dynamics, and empirical evidence (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:dpc:wpaper:0711

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