Sustainable Development, Renewable Resources and Technological Progress

Valente, Simone (2005) Sustainable Development, Renewable Resources and Technological Progress. Environmental and Resource Economics, 30 (1). pp. 115-125. ISSN 0924-6460

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Abstract

Conflicts between optimality and sustainability are typical in the literature on sustainable development. Using the “capital-resource” growth model, Pezzey and Withagen (1998, Scandinavian Journal of Economics100 (2), 513–527) have proved that if natural resources are exhaustible, the time-path of consumption is single-peaked, declining from some point in time onwards. This paper extends the model to include technical progress, resource renewability, extraction costs and population growth. The main result is that, for any constant returns to scale technology, optimal paths can be sustainable only if the social discount rate does not exceed the sum of the rates of resource regeneration and augmentation. The development of resource-saving techniques is crucial for sustaining consumption per capita in the long run, whereas capital depreciation and extraction costs are neutral with respect to this sustainability condition.

Item Type: Article
Uncontrolled Keywords: optimal growth,renewable resources,sustainable development,technological progress
Faculty \ School: Faculty of Social Sciences > School of Economics
Related URLs:
Depositing User: Pure Connector
Date Deposited: 24 Sep 2016 01:57
Last Modified: 25 Jul 2018 12:40
URI: https://ueaeprints.uea.ac.uk/id/eprint/60320
DOI: 10.1007/s10640-004-2377-3

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