Endogenous Growth and Property Rights over Renewable Resources
AbstractWe analyze the general-equilibrium effects of alternative regimes of access rights over renewable natural resources – namely, open access versus full property rights on the pace of development when economic growth is endogenously driven by both horizontal and vertical innovations. Resource exhaustion may occur under both regimes but is more likely to arise under open access. Under full property rights, positive resource rents increase expenditures and temporarily accelerate productivity growth, but also yield a higher resource price at least in the short-to-medium run. We characterize analytically the welfare effect of a regime switch induced by a failure in property rights enforcement: switching to open access is welfare reducing if the utility gain generated by the initial drop in the resource price is more than offset by the static and dynamic losses induced by reduced expenditure.
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Bibliographic InfoPaper provided by Duke University, Department of Economics in its series Working Papers with number 13-11.
Date of creation: 2013
Date of revision:
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Endogenous growth; Innovation; Renewable Resources; Sustainable Development; Property Rights;
Other versions of this item:
- Simone Valente & Nujin Suphaphiphat & Pietro F. Peretto, 2013. "Endogenous Growth and Property Rights Over Renewable Resources," Working Paper Series 14413, Department of Economics, Norwegian University of Science and Technology.
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-24 (All new papers)
- NEP-DGE-2013-06-24 (Dynamic General Equilibrium)
- NEP-ENV-2013-06-24 (Environmental Economics)
- NEP-FDG-2013-06-24 (Financial Development & Growth)
- NEP-INO-2013-06-24 (Innovation)
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