Research and development and sustainable growth over alternative types of natural resources

Thanh Le and Cuong Le Van ()
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Cuong Le Van: IPAG Business School, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: This paper develops an endogenous growth model to study how different types of natural resources - namely renewable versus non-renewable - affect sustainable growth and welfare. In a decentralized equilibrium setting, we find that negative growth may occur in an economy endowed with non-renewable resources. To escape from this stagnant growth, the research sector must be highly productive. However, non-renewable resources are not necessarily dominated by their renewable counterparts in terms of resulting output growth and welfare. We also characterize analytically and quantitatively equilibrium paths to evaluate growth and welfare implications resulting from a resource type switch that is caused by an adverse environmental shock.

Keywords: Non-renewable resources; Renewable resources; R&D-based growth; Stagnant growth; Vertical innovation (search for similar items in EconPapers)
Date: 2018-04
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Citations: View citations in EconPapers (3)

Published in Economic Modelling, 2018, 70, pp.215-229. ⟨10.1016/j.econmod.2017.11.008⟩

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Journal Article: Research and development and sustainable growth over alternative types of natural resources (2018)
Working Paper: Research and development and sustainable growth over alternative types of natural resources (2018)
Working Paper: Research and development and sustainable growth over alternative types of natural resources (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:hal-03260756

DOI: 10.1016/j.econmod.2017.11.008

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