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How to substitute in order to sustain: knowledge driven growth under environmental restrictions

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  • BRETSCHGER, LUCAS

Abstract

This paper presents different substitution mechanisms which determine, in a theoretical framework, the conditions for long-term sustainable development. In a one-sector approach and in two versions of a multi-sector endogenous growth model, the accumulation and the substitution of man-made inputs for natural resources are analysed. Assuming man-made capital to be an output of a specific sector of the economy, the elasticities of substitution between the different inputs play a more complex role than suggested by the one-sector approach. According to the multi-sector models, the prediction of growth becoming sustainable emerges as realistic, provided that the sectoral adjustment costs in the economy are not too high.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 3 (1998)
Issue (Month): 04 (October)
Pages: 425-442

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Handle: RePEc:cup:endeec:v:3:y:1998:i:04:p:425-442_00

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Cited by:
  1. Francesco Ricci, 2004. "Channels of Transmission of Environmental Policy to Economic Growth: A Survey of the Theory," Working Papers 2004.52, Fondazione Eni Enrico Mattei.
  2. Färnstrand Damsgaard, Erika, 2012. "Exhaustible resources, technology choice and industrialization of developing countries," Resource and Energy Economics, Elsevier, vol. 34(3), pages 271-294.
  3. De Perthuis, Christian & Rosier, Philippe & Crassous, Renaud & Bonnet, Xavier & Ollivier, Timothée & Guillerminet, Marie-Laure & Lamotte, Henri & Crifo, Patricia & Bureau, Dominique & Quinet, Alain &, . "Le financement de la croissance verte," Economics Papers from University Paris Dauphine 123456789/7769, Paris Dauphine University.
  4. Lucas Bretschger, 2010. "Energy Prices, Growth and the Channels Imbetween: Theory and evidence," OxCarre Working Papers 034, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  5. Lucas Bretschger, 2004. "Natural resource scarcity and long-run development: central mechanisms when conditions are seemingly unfavourable," CER-ETH Economics working paper series 03/29, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  6. Bretschger, Lucas & Smulders, Sjak, 2012. "Sustainability and substitution of exhaustible natural resources," Journal of Economic Dynamics and Control, Elsevier, vol. 36(4), pages 536-549.
  7. Lucas Bretschger & Sjak Smulders, 2004. "Sustainability and substitution of exhaustible natural resources. How resource prices affect long-term R&D-investments," CER-ETH Economics working paper series 03/26, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  8. Bretschger, Lucas, 2005. "Economics of technological change and the natural environment: How effective are innovations as a remedy for resource scarcity?," Ecological Economics, Elsevier, vol. 54(2-3), pages 148-163, August.
  9. Esther Fernández & Rafaela Pérez Sánchez & Jesús Ruiz, 2003. "Tax Reforms in an Endogenous Growth Model with Pollution," Economic Working Papers at Centro de Estudios Andaluces E2003/31, Centro de Estudios Andaluces.
  10. Lucas Bretschger, 1998. "Nachhaltige Entwicklung der Weltwirtschaft: Ein Nord-Süd-Ansatz," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 134(III), pages 369-390, September.
  11. Lucas Bretschger, 2010. "Population Growth and Natural Resource Scarcity: Long run development under seemingly unfavourable conditions," OxCarre Working Papers 037, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.

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