IDEAS home Printed from https://ideas.repec.org/p/aue/wpaper/2564.html
   My bibliography  Save this paper

Growth embedded in a finite Earth: The role of using and producing ideas

Author

Listed:
  • William Brock
  • Anastasios Xepapadeas

Abstract

This paper puts forth a growth model that takes into account the fact that the economy is embedded in a finite Earth. Economic activity uses services which are provided by the biosphere; however, this supply is finite. The question we explore in this paper is whether ideas that drive the accumulation of "brown" and "green" R&D that produces material goods which could be biosphere using or biosphere saving can provide persistent growth when the whole system is embedded in a finite Earth. Or, to put it differently, whether it is possible to have persistent growth supported by idea-driven technical change without violating the impact inequality proposed by Dasgupta (2021), which compares global demand for services provided by the biosphere to the supply of these services. We develop optimal time allocation models and provide conditions that support the feasibility of growth when the net impact on biosphere is zero.

Suggested Citation

  • William Brock & Anastasios Xepapadeas, 2025. "Growth embedded in a finite Earth: The role of using and producing ideas," DEOS Working Papers 2564, Athens University of Economics and Business.
    • Handle: RePEc:aue:wpaper:2564
    as

    Download full text from publisher

    File URL: http://wpa.deos.aueb.gr/docs/2025.BX.LimGrowth.pdf
    File Function: First version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Samuel S. Kortum, 1997. "Research, Patenting, and Technological Change," Econometrica, Econometric Society, vol. 65(6), pages 1389-1420, November.
    2. Daly, Herman E, 1974. "The Economics of the Steady State," American Economic Review, American Economic Association, vol. 64(2), pages 15-21, May.
    3. Oded Galor, 2012. "The demographic transition: causes and consequences," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(1), pages 1-28, January.
    4. Kenneth Arrow & Partha Dasgupta & Karl-Göran Mäler, 2003. "Evaluating Projects and Assessing Sustainable Development in Imperfect Economies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(4), pages 647-685, December.
    5. Stokey, Nancy L, 1998. "Are There Limits to Growth?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 1-31, February.
    6. Robert M. Solow, 2009. "Does Growth Have a Future? Does Growth Theory Have a Future? Are These Questions Related?," History of Political Economy, Duke University Press, vol. 41(5), pages 27-34, Supplemen.
    7. Partha Dasgupta, 2022. "The Economics of Biodiversity: Afterword," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(4), pages 1017-1039, December.
    8. Arrow, Kenneth J. & Dasgupta, Partha & Goulder, Lawrence H. & Mumford, Kevin J. & Oleson, Kirsten, 2012. "Sustainability and the measurement of wealth," Environment and Development Economics, Cambridge University Press, vol. 17(3), pages 317-353, June.
    9. Charles I. Jones, 2023. "Recipes and Economic Growth: A Combinatorial March Down an Exponential Tail," Journal of Political Economy, University of Chicago Press, vol. 131(8), pages 1994-2031.
    10. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    11. Johan Rockström & Will Steffen & Kevin Noone & Åsa Persson & F. Stuart Chapin & Eric F. Lambin & Timothy M. Lenton & Marten Scheffer & Carl Folke & Hans Joachim Schellnhuber & Björn Nykvist & Cynthia , 2009. "A safe operating space for humanity," Nature, Nature, vol. 461(7263), pages 472-475, September.
    12. Antonin Bergeaud & Gilbert Cette & Remy Lecat, 2017. "Total Factor Productivity in Advanced Countries: A Longterm Perspective," International Productivity Monitor, Centre for the Study of Living Standards, vol. 32, pages 6-24, Spring.
    Full references (including those not matched with items on IDEAS)

    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. William Brock & Anastasios Xepapadeas, 2024. "Growth embedded in a finite Earth," DEOS Working Papers 2402, Athens University of Economics and Business.
    2. Hassler, J. & Krusell, P. & Smith, A.A., 2016. "Environmental Macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 1893-2008, Elsevier.
    3. Mohajan, Haradhan & Deb, Suman & Rozario, Steve, 2011. "Environmental accounting and the roles of economics," MPRA Paper 50687, University Library of Munich, Germany, revised 25 Aug 2011.
    4. Boikos, Spyridon & Bucci, Alberto & Stengos, Thanasis, 2013. "Non-monotonicity of fertility in human capital accumulation and economic growth," Journal of Macroeconomics, Elsevier, vol. 38(PA), pages 44-59.
    5. Cairns, Robert D. & Del Campo, Stellio & Martinet, Vincent, 2019. "Sustainability of an economy relying on two reproducible assets," Journal of Economic Dynamics and Control, Elsevier, vol. 101(C), pages 145-160.
    6. Nick Hanley & Louis Dupuy & Eoin McLaughlin, 2015. "Genuine Savings And Sustainability," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 779-806, September.
    7. Anastasios Xepapadeas, 2014. "Environmental Sustainability and Economic Development: Cost Benefit Analysis for Sustainable Development," DEOS Working Papers 1413, Athens University of Economics and Business.
    8. Ribas, Aline & Lucena, André F.P. & Schaeffer, Roberto, 2017. "Bridging the energy divide and securing higher collective well-being in a climate-constrained world," Energy Policy, Elsevier, vol. 108(C), pages 435-450.
    9. McLaughlin, Eoin & Ducoing, Cristián & Hanley, Nick, 2024. "Challenges of wealth-based sustainability metrics: A critical appraisal," Ecological Economics, Elsevier, vol. 224(C).
    10. E. Agliardi & M. Pinar & T. Stengos, 2014. "Assessing temporal trends and industry contributions to air and water pollution using stochastic dominance," Working Papers wp981, Dipartimento Scienze Economiche, Universita' di Bologna.
    11. Bella, Giovanni, 2006. "Uniqueness and Indeterminacy of Equilibria in a Model with Polluting Emissions," Climate Change Modelling and Policy Working Papers 12039, Fondazione Eni Enrico Mattei (FEEM).
    12. Kuhn, Michael & Prettner, Klaus, 2016. "Growth and welfare effects of health care in knowledge-based economies," Journal of Health Economics, Elsevier, vol. 46(C), pages 100-119.
    13. Miroslav Gabrovski, 2020. "Simultaneous Innovation and the Cyclicality of R&D," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 36, pages 122-133, April.
    14. James B. Ang & Jakob B. Madsen, 2011. "Can Second-Generation Endogenous Growth Models Explain the Productivity Trends and Knowledge Production in the Asian Miracle Economies?," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1360-1373, November.
    15. Hu, Mei-Chih & Mathews, John A., 2005. "National innovative capacity in East Asia," Research Policy, Elsevier, vol. 34(9), pages 1322-1349, November.
    16. Klaus Prettner, 2012. "Public education, technological change and economic prosperity: semi-endogenous growth revisited," PGDA Working Papers 9012, Program on the Global Demography of Aging.
    17. Visbeck, Martin & Kronfeld-Goharani, Ulrike & Neumann, Barbara & Rickels, Wilfried & Schmidt, Jörn & van Doorn, Erik & Matz-Lück, Nele & Ott, Konrad & Quaas, Martin F., 2014. "Securing blue wealth: The need for a special sustainable development goal for the ocean and coasts," Marine Policy, Elsevier, vol. 48(C), pages 184-191.
    18. Zeng, Jinli, 2003. "Reexamining the interaction between innovation and capital accumulation," Journal of Macroeconomics, Elsevier, vol. 25(4), pages 541-560, December.
    19. Yamaguchi, Rintaro, 2020. "Available capital, utilized capital, and shadow prices in inclusive wealth accounting," Ecological Economics, Elsevier, vol. 169(C).
    20. Carl Obst & Lars Hein & Bram Edens, 2016. "National Accounting and the Valuation of Ecosystem Assets and Their Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(1), pages 1-23, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:aue:wpaper:2564. 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: Ekaterini Glynou (email available below). General contact details of provider: https://edirc.repec.org/data/diauegr.html .

    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.