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Optimal Multi-Regional Patterns of Economic Development and Material Resource Use

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  • Marco A. Janssen

    (Vrije Universiteit Amsterdam)

  • Jeroen C.J.M. van den Bergh

    (Vrije Universiteit Amsterdam)

Abstract

Regional economic activities require materials that can be extracteddomestically or imported from other regions. Analysis of optimalpatterns ofcombined economic development and materials use should be discussedinrelation to trade and the environment. A model is presented thatoptimiseslong-term welfare of a 2-region economic system with trade in virginandrecycled materials as well as consumer goods. The only differencebetween theregions concerns the size of their domestic materials resources.Numericaloptimisation experiments show that trade of resources and goodsincreases thecarrying capacity of the regions and their levels of welfare.Furthermore,regions are shown to specialise in certain economic sectors.

Suggested Citation

  • Marco A. Janssen & Jeroen C.J.M. van den Bergh, 2000. "Optimal Multi-Regional Patterns of Economic Development and Material Resource Use," Tinbergen Institute Discussion Papers 00-012/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20000012
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    References listed on IDEAS

    as
    1. Pieter J.H. van Beukering & Jeroen C.J.M. van den Bergh & Marco A. Janssen & Harmen Verbruggen, 2000. "International Material-Product Chains: An Alternative Perspective on International Trade and Trade Theories," Tinbergen Institute Discussion Papers 00-034/3, Tinbergen Institute.
    2. Matthew Leach & Ausilio Bauen & Nigel Lucas, 1997. "A Systems Approach to Materials Flow in Sustainable Cities: A Case Study of Paper," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 40(6), pages 705-724.
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    4. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc.
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    6. van den Bergh, Jeroen C. J. M. & Nijkamp, Peter, 1994. "Dynamic macro modelling and materials balance : Economic-environmental integration for sustainable development," Economic Modelling, Elsevier, vol. 11(3), pages 283-307, July.
    7. Jeroen C.J.M. van den Bergh (ed.), 1999. "Handbook of Environmental and Resource Economics," Books, Edward Elgar Publishing, number 801.
    8. Marco A. Janssen & Jeroen C.J.M. van den Bergh, 1999. "SIMBIOSES: Modelling Industrial Metabolism in a Multi-Regional Economic System," Tinbergen Institute Discussion Papers 99-060/3, Tinbergen Institute.
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