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Further Results on “An Endogenous Growth Model with Embodied Energy-Saving Technical Change”

  • Hakan Yetkiner

    ()

    (Department of Economics, Izmir University of Economics)

  • Adrian von Zon

    ()

    (Department of Economics, Maastricht University)

In this short paper we add a non-renewable resource sector to van Zon and Yetkiner (2003) that extended Romer (1990) by including energy consumption of intermediate goods in a context of endogenous and embodied technical change. Van Zon and Yetkiner (2003) showed that the growth rate depends negatively on the growth of exogenous real energy prices. In this paper, we endogenise the growth rate of real energy prices by introducing a non-renewable resource sector into the model. This allows us to study the comparative statics of the model. We show that changes in technology parameters promote growth, while others disfavour growth.

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File URL: http://eco.ieu.edu.tr/wp-content/wp0701.pdf
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Paper provided by Izmir University of Economics in its series Working Papers with number 0701.

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Length: 11 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:izm:wpaper:0701
Contact details of provider: Fax: (90) 232 279 2626
Web page: http://eco.ieu.edu.tr

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  1. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
  2. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
  3. van Zon, Adriaan & Yetkiner, I. Hakan, 2003. "An endogenous growth model with embodied energy-saving technical change," Resource and Energy Economics, Elsevier, vol. 25(1), pages 81-103, February.
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