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Economic Growth Theory and Natural Resource Constraints: A Stocktake and Critical Assessment

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  • Robbie Maris
  • Mark Holmes

Abstract

Society is facing significant environmental challenges. The effects of climate change, biodiversity loss and environmental degradation are being increasingly felt worldwide. In recent years, researchers have attempted to adapt neoclassical and endogenous growth theory to account for constraints imposed by scarce natural resources. In this article, we review where, and how, researchers tend to incorporate natural resources and natural capital into growth theory. We then outline areas and questions that remain unanswered, including how novel impact investing and the eroding trade‐off between GDP and the environment affect growth theory.

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  • Robbie Maris & Mark Holmes, 2023. "Economic Growth Theory and Natural Resource Constraints: A Stocktake and Critical Assessment," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(2), pages 255-268, June.
    • Handle: RePEc:bla:ausecr:v:56:y:2023:i:2:p:255-268
    DOI: 10.1111/1467-8462.12505
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