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Sustainable Economic Development: On the Coexistence of Resource-Dependent and Resource-Impacting Industries

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  • Lopez, Ramon E.

Abstract

This paper studies the interactions between harvesters that depend on the renewable resource as a vital factor of production (i.e., fisheries) and industries that can have important impacts on the renewable resource but whose production does not depend on it (i.e., off-shore oil extraction) in the context of a growing economy. We examine these issues in the context of a closed economy focusing on how the co-existence between these two sectors affects the potential for sustainable development and how the well-being of the poor, i.e., the harvesters, is affected. We identify conditions under which existence and expansion of a resource-impacting sector may make sustainable development more likely. However, if these conditions are not met growth of the resource-impacting sector leads to resource depletion or even complete extinction and thus to the disappearance of the harvesting activity over the long run.

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Bibliographic Info

Paper provided by University of Maryland, Department of Agricultural and Resource Economics in its series Working Papers with number 92390.

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Date of creation: Jun 2010
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Handle: RePEc:ags:umdrwp:92390

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Keywords: Environmental Economics and Policy; Resource /Energy Economics and Policy;

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  1. Smulders, J.A. & Soest, D.P. van & Withagen, C.A.A.M., 2004. "International trade, species diversity and habitat conservation," Open Access publications from Tilburg University urn:nbn:nl:ui:12-140731, Tilburg University.
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Cited by:
  1. Angelo Antoci & Paolo Russu & Elisa Ticci, 2011. "Investement inflows and sustainable development in a natural resource-dependent economy," Department of Economic Policy, Finance and Development (DEPFID) University of Siena 0311, Department of Economic Policy, Finance and Development (DEPFID), University of Siena.
  2. Sjak Smulders & Michael Toman & Cees Withagen, 2014. "Growth Theory and "Green Growth"," OxCarre Working Papers 135, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.

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