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Sustainable economic development: on the coexistence of resource-dependent and resource-impacting industries

  • LÓPEZ, RAMÓN

This paper studies the interactions between harvesters, whose income depends on a renewable natural resource as a key factor of production (e.g., fisheries) and industries that can have important impacts on the renewable resource, but whose production does not depend on it (e.g., off-shore oil extraction) in the context of a growing economy. We examine these issues for a closed economy focusing on how the co-existence between these two sectors affects sustainable development and the well-being of the poor, i.e., the harvesters. We show that under certain conditions the existence and expansion of a resource-impacting industrial sector may be consistent with sustainable development. However, if these conditions are not met, growth of the resource-impacting sector leads to further resource depletion and may even threaten the feasibility of sustainable development.

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Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 15 (2010)
Issue (Month): 06 (December)
Pages: 687-705

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Handle: RePEc:cup:endeec:v:15:y:2010:i:06:p:687-705_00
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  1. repec:ner:tilbur:urn:nbn:nl:ui:12-140731 is not listed on IDEAS
  2. Smulders, Sjak & van Soest, Daan & Withagen, Cees, 2004. "International trade, species diversity, and habitat conservation," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 891-910, September.
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