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Natural Resources Dynamics: Another Look

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  • Giuseppe Di Vita

    (Giuseppe Di Vita, Faculty of Law, University of Catania)

Abstract

In this paper we study the problem of exhaustible resources and renewable resources in a theoretical endogenous growth framework, under various assumptions. In particular, we consider the hypotheses that those two inputs are or are not technologically perfect substitutes of each other. Moreover, we develop the starting model accounting for the negative externality of waste accumulation. Finally, a comparative analysis is made between Pigouvian tax and waste recycling as an environmental policy to internalize the negative externality represented by refuse accumulation.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2004.110.

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Date of creation: Jul 2004
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Handle: RePEc:fem:femwpa:2004.110

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Keywords: Economic growth; Endogenous technological progress; Exhaustible resources; Pigouvian taxes; Renewable natural inputs; Technological substitutability;

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References

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  1. Noel, Michael, 1978. "Resource extraction and recycling with environmental costs," Journal of Environmental Economics and Management, Elsevier, vol. 5(3), pages 220-235, September.
  2. C. G. Plourde, 1972. "A Model of Waste Accumulation and Disposal," Canadian Journal of Economics, Canadian Economics Association, vol. 5(1), pages 119-25, February.
  3. Keeler, Emmett & Spence, Michael & Zeckhauser, Richard, 1972. "The optimal control of pollution," Journal of Economic Theory, Elsevier, vol. 4(1), pages 19-34, February.
  4. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
  5. Lusky, Rafael, 1975. "Optimal taxation policies for conservation and recycling," Journal of Economic Theory, Elsevier, vol. 11(3), pages 315-328, December.
  6. Mendelssohn, Roy & Sobel, Matthew J., 1980. "Capital accumulation and the optimization of renewable resource models," Journal of Economic Theory, Elsevier, vol. 23(2), pages 243-260, October.
  7. Smith, Vernon L., . "An Optimistic Theory of Exhaustible Resources," Working Papers 39, California Institute of Technology, Division of the Humanities and Social Sciences.
  8. Olson, Lars J. & Roy, Santanu, 2000. "Dynamic Efficiency of Conservation of Renewable Resources under Uncertainty," Journal of Economic Theory, Elsevier, vol. 95(2), pages 186-214, December.
  9. d'Arge, R C & Kogiku, K C, 1973. "Economic Growth and the Environment," Review of Economic Studies, Wiley Blackwell, vol. 40(1), pages 61-77, January.
  10. Poul Schou, 2000. "Polluting Non-Renewable Resources and Growth," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 16(2), pages 211-227, June.
  11. Dorfman, Robert, 1969. "An Economic Interpretation of Optimal Control Theory," American Economic Review, American Economic Association, vol. 59(5), pages 817-31, December.
  12. Plourde, C G, 1970. "A Simple Model of Replenishable Natural Resource Exploitation," American Economic Review, American Economic Association, vol. 60(3), pages 518-22, June.
  13. Tahvonen Olli & Kuuluvainen Jari, 1993. "Economic Growth, Pollution, and Renewable Resources," Journal of Environmental Economics and Management, Elsevier, vol. 24(2), pages 101-118, March.
  14. Marian Radetzki & Carl Van Duyne, 1985. "The Demand for Scrap and Primary Metal Ores after a Decline in Secular Growth," Canadian Journal of Economics, Canadian Economics Association, vol. 18(2), pages 435-49, May.
  15. Solow, Robert M, 1974. "The Economics of Resources or the Resources of Economics," American Economic Review, American Economic Association, vol. 64(2), pages 1-14, May.
  16. Rafael Lusky, 1976. "A Model of Recycling and Pollution Control," Canadian Journal of Economics, Canadian Economics Association, vol. 9(1), pages 91-101, February.
  17. R. M. Solow, 1973. "Intergenerational Equity and Exhaustable Resources," Working papers 103, Massachusetts Institute of Technology (MIT), Department of Economics.
  18. Krautkraemer, Jeffrey A., 1989. "Price expectations, ore quality selection, and the supply of a nonrenewable resource," Journal of Environmental Economics and Management, Elsevier, vol. 16(3), pages 253-267, May.
  19. Olson, Lars J. & Roy, Santanu, 1996. "On Conservation of Renewable Resources with Stock-Dependent Return and Nonconcave Production," Journal of Economic Theory, Elsevier, vol. 70(1), pages 133-157, July.
  20. Edward Barbier, 1999. "Endogenous Growth and Natural Resource Scarcity," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 14(1), pages 51-74, July.
  21. Kemp, Murray C & Long, Ngo Van, 1980. "On Two Folk Theorems Concerning the Extraction of Exhaustible Resources," Econometrica, Econometric Society, vol. 48(3), pages 663-73, April.
  22. Smith, Vernon L, 1972. "Dynamics of Waste Accumulation: Disposal Versus Recycling," The Quarterly Journal of Economics, MIT Press, vol. 86(4), pages 600-616, November.
  23. Huhtala, Anni, 1999. "Optimizing production technology choices: conventional production vs. recycling," Resource and Energy Economics, Elsevier, vol. 21(1), pages 1-18, January.
  24. Tahvonen, Olli & Salo, Seppo, 2001. "Economic growth and transitions between renewable and nonrenewable energy resources," European Economic Review, Elsevier, vol. 45(8), pages 1379-1398, August.
  25. Li, Chuan-Zhong & Lofgren, Karl-Gustaf, 2000. "Renewable Resources and Economic Sustainability: A Dynamic Analysis with Heterogeneous Time Preferences," Journal of Environmental Economics and Management, Elsevier, vol. 40(3), pages 236-250, November.
  26. Anderson, Dennis, 2001. "Technical progress and pollution abatement: an economic view of selected technologies and practices," Environment and Development Economics, Cambridge University Press, vol. 6(03), pages 283-311, July.
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