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Kollenbach, Gilbert 
ORCID: https://orcid.org/0000-0002-1168-3316
(2017)
Endogenous growth with a limited fossil fuel extraction capacity.
Canadian Journal of Economics, 50 (1).
pp. 233-272.
ISSN 0315-4890
Abstract
Campbell (1980) and following authors have discussed a limited resource extraction capacity as an augmentation of the well-known Hotelling model. We integrate a limited extraction capacity and related investments in the endogenous growth model of Tsur and Zemel (2005) to study its effect on economic development. The capacity constraint gives rise to three effects. On the one hand, higher energy costs and the reallocation of production towards capacity investments decrease production available for consumption, research and/or capital investments (energy costs and reallocation effect). On the other hand, research investments may increase, which boosts available production (research effect). Depending on the capital endowment and the strength of the effects, long-run consumption may be boosted or depressed. In particular, the capacity constraint may render everlasting consumption growth non-optimal in a resource-rich economy. Furthermore, we find that capacity investments may be postponed to later points in time if the capital endowment is high.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | sdg 8 - decent work and economic growth ,/dk/atira/pure/sustainabledevelopmentgoals/decent_work_and_economic_growth |
| Faculty \ School: | Faculty of Social Sciences > School of Economics |
| UEA Research Groups: | Faculty of Social Sciences > Research Groups > Environment, Resources and Conflict |
| Depositing User: | LivePure Connector |
| Date Deposited: | 28 Oct 2024 11:30 |
| Last Modified: | 03 Nov 2024 07:30 |
| URI: | https://ueaeprints.uea.ac.uk/id/eprint/97230 |
| DOI: | 10.1111/caje.12256 |
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