Economic Growth And Dynamics Of Renewable Resource With Housing, Agricultural And Resource Land Use
This paper develops an economic growth model of land use with capital accumulation and dynamics of renewable resource. The economy consists of the industrial, agricultural and renewable resource sectors and the land is distributed among housing, agricultural production and resource growth. The model synthesizes the main ideas in the Solow growth, the Ricardian two-sector economic model, and the logistic model in resource economics in a compact framework. With some specified values of the parameters, we demonstrate that the economic system has a unique equilibrium point. We also conduct comparative dynamic analysis with regard to changes in the industrial sector’s total productivity, the propensities to consume the resource, to consume housing and to save. For instance, our simulation result demonstrates that when the propensity to consume the renewable resource is increased, the land distribution is not affected; both the consumption level and price of the resource are increased; the resource sector increases its output and employs more labor and capital, but the stock of the resource falls over time; the total capital stock and the capital inputs to the agricultural and industrial sectors are reduced; the rate of interest is increased but the wage rate is reduced; less labor is employed by the industrial and agricultural sectors; and the land rent and the price of agricultural good are reduced. Our model also predicts some results different from the growth model with renewable resource by Eliasson and Turnovsky (2004).
Volume (Year): 6 (2011)
Issue (Month): 2 (August)
|Contact details of provider:|| Postal: Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No 17, postal code 550324, Sibiu, Romania|
Phone: 004 0269 210375
Fax: 004 0269 210375
Web page: http://economice.ulbsibiu.ro/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Uzawa,Hirofumi, 2005.
"Economic Analysis of Social Common Capital,"
Cambridge University Press, number 9780521847889, November.
- Tornell, Aaron & Velasco, Andes, 1992. "The Tragedy of the Commons and Economic Growth: Why Does Capital Flow from Poor to Rich Countries?," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1208-31, December.
- Naoto Jinji, 2006. "International trade and terrestrial open-access renewable resources in a small open economy," Canadian Journal of Economics, Canadian Economics Association, vol. 39(3), pages 790-808, August.
- Fujiwara, Kenji, 2011.
"Losses from competition in a dynamic game model of a renewable resource oligopoly,"
Resource and Energy Economics,
Elsevier, vol. 33(1), pages 1-11, January.
- Kenji Fujiwara, 2010. "Losses from competition in a dynamic game model of a renewable resource oligopoly," Discussion Paper Series 51, School of Economics, Kwansei Gakuin University, revised Apr 2010.
- T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
- H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
- Lúdvík Elíasson & Stephen J. Turnovsky, 2002.
"Renewable Resources In An Endogenously Growing Economy: Balanced Growth And Transitional Dynamics,"
wp20_ludvik, Department of Economics, Central bank of Iceland.
- Eliasson, Ludvik & Turnovsky, Stephen J., 2004. "Renewable resources in an endogenously growing economy: balanced growth and transitional dynamics," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 1018-1049, November.
- Rögnvaldur Hannesson, 2000. "Renewable resources and the gains from trade," Canadian Journal of Economics, Canadian Economics Association, vol. 33(1), pages 122-132, February.
- Gardner Brown, 2000. "Renewable Natural Resource Management and Use Without Markets," Discussion Papers in Economics at the University of Washington 0025, Department of Economics at the University of Washington.
- Gardner Brown, 2000. "Renewable Natural Resource Management and Use Without Markets," Working Papers 0025, University of Washington, Department of Economics.
- Ngo Van Long & Shengzu Wang, 2008.
"Resource-Grabbing By Status-Conscious Agents,"
Departmental Working Papers
2008-08, McGill University, Department of Economics.
- Wei-Bin Zhang, 2011. "Renewable Resources, Capital Accumulation, and Economic Growth," Business Systems Research, Society for Promotion of Business Information Technology (BIT), vol. 2(1), pages 24-35.
- Ayong Le Kama, Alain D., 2001. "Sustainable growth, renewable resources and pollution," Journal of Economic Dynamics and Control, Elsevier, vol. 25(12), pages 1911-1918, December.
- Deacon Robert T., 1995. "Assessing the Relationship between Government Policy and Deforestation," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 1-18, January.
- Richard Horan & James Shortle, 1999. "Optimal Management of Multiple Renewable Resource Stocks: An Application to Minke Whales," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(4), pages 435-458, June.
- Phoebe Koundouri & Christina Christou, 2006.
"Dynamic adaptation to resource scarcity and backstop availability: theory and application to groundwater ,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 50(2), pages 227-245, 06.
- Koundouri, Phoebe & Christou, Christina, 2006. "Dynamic adaptation to resource scarcity and backstop availability: theory and application to groundwater," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(2), June.
- Gardner M. Brown, 2000. "Renewable Natural Resource Management and Use without Markets," Journal of Economic Literature, American Economic Association, vol. 38(4), pages 875-914, December.
- David Levhari & Cees Withagen, 1992. "Optimal management of the growth potential of renewable resources," Journal of Economics, Springer, vol. 56(3), pages 297-309, October.
- Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December.
- Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
- Berck, Peter, 1981. "Optimal management of renewable resources with growing demand and stock externalities," Journal of Environmental Economics and Management, Elsevier, vol. 8(2), pages 105-117, June.
- 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.
- Wirl, Franz, 2004. "Sustainable growth, renewable resources and pollution: Thresholds and cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 28(6), pages 1149-1157, March.
- Koskela, Erkki & Ollikainen, Markku & Puhakka, Mikko, 2002. "Renewable Resources in an Overlapping Generations Economy Without Capital," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 497-517, May.
- Alvarez-Cuadrado, Francisco & Van Long, Ngo, 2011. "Relative consumption and renewable resource extraction under alternative property-rights regimes," Resource and Energy Economics, Elsevier, vol. 33(4), pages 1028-1053.
- Benchekroun, Hassan, 2003. "Unilateral production restrictions in a dynamic duopoly," Journal of Economic Theory, Elsevier, vol. 111(2), pages 214-239, August.
- Andrea Beltratti & Graciela Chichilnisky & Geoffrey Heal, 1993. "Sustainable Growth and the Green Golden Rule," NBER Working Papers 4430, National Bureau of Economic Research, Inc.
- Jie Zhang & Junsen Zhang, 2005. "The Effect of Life Expectancy on Fertility, Saving, Schooling and Economic Growth: Theory and Evidence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(1), pages 45-66, 03.
- Cairns, Robert D. & Tian, Huilan, 2010. "Sustained development of a society with a renewable resource," Journal of Economic Dynamics and Control, Elsevier, vol. 34(6), pages 1048-1061, June.
- Erwin H. Bulte & G. Cornelis van Kooten, 1999. "Economics of Antipoaching Enforcement and the Ivory Trade Ban," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(2), pages 453-466.
When requesting a correction, please mention this item's handle: RePEc:blg:journl:v:6:y:2011:i:2:p:151-174. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mihaela Herciu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.