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The effect of natural resources on a sustainable development policy: The approach of non-sustainable externalities

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  • Schilling, Markus
  • Chiang, Lichun

Abstract

The debate about the importance of non-renewable resources for economic development between optimists and pessimists shows that the extensive depletion of non-renewable resources, particularly oil, along with a higher level of consumption could have a significant impact on the economic development of future generations. Based on this debate, this paper proposes criteria under which the depletion of non-renewable resources would create excess costs for future generations. Therefore, this paper aims to answer the question "What will be the impact of the depletion of non-renewable resources on sustainable economic development?" Accordingly, a sustainable development policy appears feasible by minimizing non-sustainable externalities which derive from future externalities that weigh the benefits from a previous employment of natural resources. The research based on qualitative analysis clarifies the reasons for and the extents of taking sustainability into account as well as points to difficulties of implementing policies to time the transition towards a sustainable economic development. Finally, the research shows the implications of this approach for environmental degradation, the depletion of non-renewable resources and energy production.

Suggested Citation

  • Schilling, Markus & Chiang, Lichun, 2011. "The effect of natural resources on a sustainable development policy: The approach of non-sustainable externalities," Energy Policy, Elsevier, vol. 39(2), pages 990-998, February.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:2:p:990-998
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    Cited by:

    1. Stan Becker, 2013. "Has the World Really Survived the Population Bomb? (Commentary on “How the World Survived the Population Bomb: Lessons From 50 Years of Extraordinary Demographic History”)," Demography, Springer;Population Association of America (PAA), vol. 50(6), pages 2173-2181, December.
    2. Jian Wu & Guangdong Wu & Qing Zhou & Mi Li, 2014. "Spatial Variation of Regional Sustainable Development and its Relationship to the Allocation of Science and Technology Resources," Sustainability, MDPI, Open Access Journal, vol. 6(9), pages 1-18, September.
    3. Batubara, Marwan & Purwanto, Widodo Wahyu & Fauzi, Akhmad, 2016. "Proposing a decision-making process for the development of sustainable oil and gas resources using the petroleum fund: A case study of the East Natuna gas field," Resources Policy, Elsevier, vol. 49(C), pages 372-384.
    4. Paul Marinescu & Marin Burcea, 2012. "Information and Ecological Behaviour towards the Natural Resources Consumption of the Population of Bucharest," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(31), pages 142-156, February.
    5. Ortega, Margarita & del Río, Pablo & Montero, Eduardo A., 2013. "Assessing the benefits and costs of renewable electricity. The Spanish case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 294-304.
    6. Mudakkar, Syeda Rabab & Zaman, Khalid & Khan, Muhammad Mushtaq & Ahmad, Mehboob, 2013. "Energy for economic growth, industrialization, environment and natural resources: Living with just enough," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 580-595.
    7. Sascha Samadi, 2017. "The Social Costs of Electricity Generation—Categorising Different Types of Costs and Evaluating Their Respective Relevance," Energies, MDPI, Open Access Journal, vol. 10(3), pages 1-37, March.

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