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Population Growth and Natural Resource Scarcity: long-run development under seemingly unfavourable conditions

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  • Lucas Bretschger

Abstract

The paper considers an economy which is constrained by natural resource use and driven by knowledge accumulation. Resources are essential inputs in all the sectors. It is shown that population growth and poor input substitution are not detrimental but, on the contrary, even necessary for obtaining a sustainable consumption level. We find a new type of Hartwick rule defining the condi-tions for a constant innovation rate. The rule does not apply to capital but to labour growth, the crucial input in research. Furthermore, it relates to the sec-toral structure of the economy and to demographic transition. The results con-tinue to hold with a backstop technology and are extended for the case of minimum resource constraints.

Suggested Citation

  • 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.
    • Handle: RePEc:oxf:oxcrwp:037
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    More about this item

    Keywords

    Population growth; non-renewable resources; poor input substitu-tion; technical change; sustainability;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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