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Materials, Capital, Direct/Indirect Substitution and Mass Balance Production Functions

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Author Info

  • Jeroen C.J.M. van den Bergh

    ()
    (Vrije Universiteit Amsterdam)

Abstract

A foundation is provided for a correct and accurate analysis of the relationship between monetary values and physical dimensions in economic production. A distinction is proposed between direct and indirect substitution. Linked to this, a classification is offered of various types of substitutability and complementarity relationships between production factors. It is argued that the neoclassical production function may be consistent with mass balance, but is unsuitable for a detailed and accurate understanding of changes in production that influence materials use. For this purpose, general production functions satisfying mass balance are formulated, drawing upon the proposed classifications. This discussion paper has resulted in a publication in Land Economics , 1999, 75(4), 547-561.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 98-065/3.

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Date of creation: 10 Jun 1998
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Handle: RePEc:dgr:uvatin:19980065

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Web page: http://www.tinbergen.nl

Related research

Keywords: Production; Production functions; Substitution; Economics; Recycling; Economic models; Functions; Demand;

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References

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  1. de Bruyn, S. M. & Opschoor, J. B., 1997. "Developments in the throughput-income relationship: theoretical and empirical observations," Ecological Economics, Elsevier, vol. 20(3), pages 255-268, March.
  2. Cabeza Gutes, Maite, 1996. "The concept of weak sustainability," Ecological Economics, Elsevier, vol. 17(3), pages 147-156, June.
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Cited by:
  1. Dellink, Rob B. & Kandelaars, Patricia P. A. A. H., 2000. "An empirical analysis of dematerialisation:: Application to metal policies in The Netherlands," Ecological Economics, Elsevier, vol. 33(2), pages 205-218, May.
  2. Førsund, Finn R., 2008. "Good Modelling of Bad Outputs: Pollution and Multiple-Output Production," Memorandum 30/2008, Oslo University, Department of Economics.
  3. Ayres, Robert U. & van den Bergh, Jeroen C.J.M., 2005. "A theory of economic growth with material/energy resources and dematerialization: Interaction of three growth mechanisms," Ecological Economics, Elsevier, vol. 55(1), pages 96-118, October.
  4. Considine, Timothy J. & Larson, Donald F., 2004. "The environment as a factor of production," Policy Research Working Paper Series 3271, The World Bank.
  5. repec:dgr:uvatin:2000068 is not listed on IDEAS
  6. David I. Stern, 2010. "The Role of Energy in Economic Growth," CCEP Working Papers 0310, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
  7. David I. Stern & Cutler J. Cleveland, 2004. "Energy and Economic Growth," Rensselaer Working Papers in Economics 0410, Rensselaer Polytechnic Institute, Department of Economics.

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