IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v112y2016icp237-244.html
   My bibliography  Save this article

Sustainable water resource and endogenous economic growth

Author

Listed:
  • Zhang, Ning
  • Wu, Tao
  • Wang, Bing
  • Dong, Liang
  • Ren, Jingzheng

Abstract

Poyang Lake suffers from a severe shortage of water, due to the construction of the Three Gorges Dam and other hydropower stations along the upper Yangtze River. In this paper, we propose a two-sector endogenous growth model to investigate the effects of extractive water use and impoundment activities on the optimal sustainable growth path. To offset the negative impact of the extractive use on the regenerative capacities of water resources, the impoundment activities should grow at a constant rate. We also provide a numerical example to illustrate the mechanisms of the endowment and the regenerative capacities of water resources on the long-run economic growth path. We find out some theoretical evidence to support the construction of a water conservancy project to restore regeneration capacities of Poyang Lake.

Suggested Citation

  • Zhang, Ning & Wu, Tao & Wang, Bing & Dong, Liang & Ren, Jingzheng, 2016. "Sustainable water resource and endogenous economic growth," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 237-244.
    • Handle: RePEc:eee:tefoso:v:112:y:2016:i:c:p:237-244
    DOI: 10.1016/j.techfore.2016.05.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162516300634
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2016.05.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
    2. Brock, William A. & Taylor, M. Scott, 2005. "Economic Growth and the Environment: A Review of Theory and Empirics," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 28, pages 1749-1821, Elsevier.
    3. Grimaud, Andre, 1999. "Pollution Permits and Sustainable Growth in a Schumpeterian Model," Journal of Environmental Economics and Management, Elsevier, vol. 38(3), pages 249-266, November.
    4. Smulders, Sjak & de Nooij, Michiel, 2003. "The impact of energy conservation on technology and economic growth," Resource and Energy Economics, Elsevier, vol. 25(1), pages 59-79, February.
    5. Ning Zhang & Fanbin Kong & Chih-Chun Kung, 2015. "On Modeling Environmental Production Characteristics: A Slacks-Based Measure for China’s Poyang Lake Ecological Economics Zone," Computational Economics, Springer;Society for Computational Economics, vol. 46(3), pages 389-404, October.
    6. Hart, Rob, 2004. "Growth, environment and innovation--a model with production vintages and environmentally oriented research," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 1078-1098, November.
    7. Rosendahl, Knut Einar, 2004. "Cost-effective environmental policy: implications of induced technological change," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 1099-1121, November.
    8. Deng, Xiangzheng & Zhao, Yonghong & Wu, Feng & Lin, Yingzhi & Lu, Qi & Dai, Jing, 2011. "Analysis of the trade-off between economic growth and the reduction of nitrogen and phosphorus emissions in the Poyang Lake Watershed, China," Ecological Modelling, Elsevier, vol. 222(2), pages 330-336.
    9. Roseta-Palma, Catarina, 2002. "Groundwater Management When Water Quality Is Endogenous," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 93-105, July.
    10. Encarna Esteban & Ariel Dinar, 2013. "Cooperative Management of Groundwater Resources in the Presence of Environmental Externalities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 443-469, March.
    11. Zhang, Xing-Ping & Cheng, Xiao-Mei, 2009. "Energy consumption, carbon emissions, and economic growth in China," Ecological Economics, Elsevier, vol. 68(10), pages 2706-2712, August.
    12. Cees Withagen, 1995. "Pollution, abatement and balanced growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 5(1), pages 1-8, January.
    13. Fare, Rolf & Grosskopf, Shawna & Noh, Dong-Woon & Weber, William, 2005. "Characteristics of a polluting technology: theory and practice," Journal of Econometrics, Elsevier, vol. 126(2), pages 469-492, June.
    14. Byrne, Margaret M., 1997. "Is growth a dirty word? Pollution, abatement and endogenous growth," Journal of Development Economics, Elsevier, vol. 54(2), pages 261-284, December.
    15. William Brock & M. Taylor, 2010. "The Green Solow model," Journal of Economic Growth, Springer, vol. 15(2), pages 127-153, June.
    16. Hofkes, Marjan W., 1996. "Modelling sustainable development: An economy-ecology integrated model," Economic Modelling, Elsevier, vol. 13(3), pages 333-353, July.
    17. Wang, Shu-Hong & Song, Ma-Lin, 2014. "Review of hidden carbon emissions, trade, and labor income share in China, 2001–2011," Energy Policy, Elsevier, vol. 74(C), pages 395-405.
    18. Catarina Roseta-Palma, 2003. "Joint Quantity/Quality Management of Groundwater," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 89-106, September.
    19. Lans Bovenberg, A. & Smulders, Sjak, 1995. "Environmental quality and pollution-augmenting technological change in a two-sector endogenous growth model," Journal of Public Economics, Elsevier, vol. 57(3), pages 369-391, July.
    20. Edward Barbier, 1999. "Endogenous Growth and Natural Resource Scarcity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 14(1), pages 51-74, July.
    21. Groth, Christian & Schou, Poul, 2007. "Growth and non-renewable resources: The different roles of capital and resource taxes," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 80-98, January.
    22. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June.
    23. Zhang, Ning & Choi, Yongrok, 2013. "A comparative study of dynamic changes in CO2 emission performance of fossil fuel power plants in China and Korea," Energy Policy, Elsevier, vol. 62(C), pages 324-332.
    24. Yongrok Choi & Dong-hyun Oh & Ning Zhang, 2015. "Environmentally sensitive productivity growth and its decompositions in China: a metafrontier Malmquist–Luenberger productivity index approach," Empirical Economics, Springer, vol. 49(3), pages 1017-1043, November.
    25. Zhang, Ning & Kong, Fanbin & Choi, Yongrok & Zhou, P., 2014. "The effect of size-control policy on unified energy and carbon efficiency for Chinese fossil fuel power plants," Energy Policy, Elsevier, vol. 70(C), pages 193-200.
    26. Zhang, Ning & Kong, Fanbin & Choi, Yongrok, 2014. "Measuring sustainability performance for China: A sequential generalized directional distance function approach," Economic Modelling, Elsevier, vol. 41(C), pages 392-397.
    27. Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October.
    28. Loschel, Andreas, 2002. "Technological change in economic models of environmental policy: a survey," Ecological Economics, Elsevier, vol. 43(2-3), pages 105-126, December.
    29. Poul Schou, 2000. "Polluting Non-Renewable Resources and Growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(2), pages 211-227, June.
    30. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Musibau, Hammed & Yanotti, Maria & Vespignani, Joaquin & Rabindra, Nepal, 2021. "Environmental performance in the West African economy: MM-quantile and 2SLS approach," Working Papers 2021-05, University of Tasmania, Tasmanian School of Business and Economics.
    2. Wu, Tao & Zhang, Li-Guo & Ge, Teng, 2019. "Managing financing risk in capacity investment under green supply chain competition," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 37-44.
    3. Tiangui Lv & Hualin Xie & Hua Lu & Xinmin Zhang & Lei Yang, 2019. "A Game Theory-Based Approach for Exploring Water Resource Exploitation Behavior in the Poyang Lake Basin, China," Sustainability, MDPI, vol. 11(22), pages 1-14, November.
    4. Xie, Hualin & Wang, Wei & Yang, Zihui & Choi, Yongrok, 2016. "Measuring the sustainable performance of industrial land utilization in major industrial zones of China," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 207-219.
    5. Libin Guo & Lina Han & Huikun Hong & Tao Zhou, 2018. "Research on the Enhancement Effects of Using Ecological Principles in Managing the Lifecycle of Industrial Land," Sustainability, MDPI, vol. 10(6), pages 1-14, June.
    6. Na Qiao & Lan Fang & Lan Mu, 2020. "Evaluating the impacts of water resources technology progress on development and economic growth over the Northwest, China," PLOS ONE, Public Library of Science, vol. 15(3), pages 1-14, March.
    7. Wu, Tao & Zhang, Ning & Gui, Lin & Wu, Wenjie, 2018. "Sustainable endogenous growth model of multiple regions: Reconciling OR and economic perspectives," European Journal of Operational Research, Elsevier, vol. 269(1), pages 218-226.
    8. Chen, Wei & Su, Zhi & Wang, Yanan & Wang, Qian & Zhao, Guoli, 2022. "Do the rank difference of industrial development zones affect land use efficiency? A regional analysis in China," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wu, Tao & Zhang, Ning & Gui, Lin & Wu, Wenjie, 2018. "Sustainable endogenous growth model of multiple regions: Reconciling OR and economic perspectives," European Journal of Operational Research, Elsevier, vol. 269(1), pages 218-226.
    2. Ricci, Francesco, 2007. "Channels of transmission of environmental policy to economic growth: A survey of the theory," Ecological Economics, Elsevier, vol. 60(4), pages 688-699, February.
    3. Eriksson, Clas, 2018. "Phasing out a polluting input in a growth model with directed technological change," Economic Modelling, Elsevier, vol. 68(C), pages 461-474.
    4. Wei Jin & ZhongXiang Zhang, 2018. "Capital Accumulation, Green Paradox, and Stranded Assets: An Endogenous Growth Perspective," Working Papers 2018.33, Fondazione Eni Enrico Mattei.
    5. Ryo Horii & Masako Ikefuji, 2014. "Environment and Growth," DSSR Discussion Papers 21, Graduate School of Economics and Management, Tohoku University.
    6. Andreas Schaefer, 2016. "Survival to Adulthood and the Growth Drag of Pollution," CER-ETH Economics working paper series 16/241, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    7. Lucas Bretschger, 2016. "Is the Environment Compatible with Growth? Adopting an Integrated Framework," CER-ETH Economics working paper series 16/260, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    8. Na Qiao & Lan Fang & Lan Mu, 2020. "Evaluating the impacts of water resources technology progress on development and economic growth over the Northwest, China," PLOS ONE, Public Library of Science, vol. 15(3), pages 1-14, March.
    9. Aznar-Márquez, J. & Ruiz-Tamarit, J.R., 2016. "Environmental pollution, sustained growth, and sufficient conditions for sustainable development," Economic Modelling, Elsevier, vol. 54(C), pages 439-449.
    10. Dagmar Nelissen & Till Requate, 2007. "Pollution-reducing and resource-saving technological progress," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 6(1), pages 5-44.
    11. Groth, Christian & Ricci, Francesco, 2011. "Optimal growth when environmental quality is a research asset," Research in Economics, Elsevier, vol. 65(4), pages 340-352, December.
    12. Carraro, Carlo & De Cian, Enrica & Nicita, Lea & Massetti, Emanuele & Verdolini, Elena, 2010. "Environmental Policy and Technical Change: A Survey," International Review of Environmental and Resource Economics, now publishers, vol. 4(2), pages 163-219, October.
    13. Lucas Bretschger & Nujin Suphaphiphat, 2012. "Use Less, Pay More: Can Climate Policy Address the Unfortunate Event for Being Poor?," CEEES Paper Series CE3S-04/12, European University at St. Petersburg, Department of Economics.
    14. Lucas Bretschger & Aimilia Pattakou, 2019. "As Bad as it Gets: How Climate Damage Functions Affect Growth and the Social Cost of Carbon," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(1), pages 5-26, January.
    15. Wei Jin & ZhongXiang Zhang, 2016. "China's pursuit of environmentally sustainable development: Harnessing the new engine of technological innovation," CCEP Working Papers 1601, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    16. Raouf Boucekkine & Natali Hritonenko & Yuri Yatsenko, 2011. "Sustainable growth under pollution quotas: optimal R&D, investment and replacement policies," Working Papers halshs-00632887, HAL.
    17. Pautrel, Xavier, 2012. "Environmental Policy, Education And Growth: A Reappraisal When Lifetime Is Finite," Macroeconomic Dynamics, Cambridge University Press, vol. 16(5), pages 661-685, November.
    18. Cameron Hepburn & Alex Bowen, 2013. "Prosperity with growth: economic growth, climate change and environmental limits," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 29, pages 617-638, Edward Elgar Publishing.
    19. Lucas Bretschger & Christos Karydas, 2018. "Optimum Growth and Carbon Policies with Lags in the Climate System," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(4), pages 781-806, August.
    20. Mónica Meireles & Isabel Soares & Óscar Afonso, 2010. "Economic Growth, Ecological Technology and Public Intervention," FEP Working Papers 378, Universidade do Porto, Faculdade de Economia do Porto.

    More about this item

    Keywords

    Endogenous economic growth; Renewable water resources; Poyang Lake; Extractive use; Impoundment activities; Water sustainability;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:112:y:2016:i:c:p:237-244. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.