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The Roles of the Environment and Natural Resources in Economic Growth Analysis

  • Toman, Michael

The primary aim of this paper is pedagogical. We first present and discuss a “wiring diagram” framework in order to elucidate the general links between economic growth and "natural capital." After developing the general framework, we develop parallel frameworks applicable to several specific sectors of the economy (agriculture, forestry, and manufacturing). Two appendices provide a mathematical formulation of the economy-wide framework and a brief historical review of the role of natural resources and the environment in economic growth theory.

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-02-71.

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Date of creation: 01 May 2003
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Handle: RePEc:rff:dpaper:dp-02-71
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  1. Heal, Geoffrey M., 1993. "The optimal use of exhaustible resources," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 3, chapter 18, pages 855-880 Elsevier.
  2. William D. Nordhaus, 1992. "Rolling the 'Dice': An Optimal Transition Path for Controlling Greenhouse Gases," Cowles Foundation Discussion Papers 1019, Cowles Foundation for Research in Economics, Yale University.
  3. Elizabeth J. Z. Robinson & Jeffrey C. Williams & Heidi J. Albers, 2002. "The Influence of Markets and Policy on Spatial Patterns of Non-Timber Forest Product Extraction," Land Economics, University of Wisconsin Press, vol. 78(2), pages 260-271.
  4. L Pez, Ram N, 2000. "Trade reform and environmental externalities in general equilibrium: analysis for an archetype poor tropical country," Environment and Development Economics, Cambridge University Press, vol. 5(04), pages 377-404, October.
  5. Hartwick, John M, 1977. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," American Economic Review, American Economic Association, vol. 67(5), pages 972-74, December.
  6. Low, P., 1992. "International Trade and the Environment," World Bank - Discussion Papers 159, World Bank.
  7. Antonio Estache, 1994. "World Development Report: Infrastructure for Development," ULB Institutional Repository 2013/44144, ULB -- Universite Libre de Bruxelles.
  8. R. M. Solow, 1973. "Intergenerational Equity and Exhaustable Resources," Working papers 103, Massachusetts Institute of Technology (MIT), Department of Economics.
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