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Sustainable water resource and endogenous economic growth

Author

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

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, Jingzhen, 2015. "Sustainable water resource and endogenous economic growth," MPRA Paper 73457, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:73457
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    6. 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.
    7. 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.
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    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

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