Research and development and sustainable growth over alternative types of natural resources

Thanh Le, Cuong Le Van

    Research output: Contribution to journalArticle

    4 Citations (Scopus)

    Abstract

    This paper develops an endogenous growth model to study how different types of natural resources - namely renewable versus non-renewable - affect sustainable growth and welfare. In a decentralized equilibrium setting, we find that negative growth may occur in an economy endowed with non-renewable resources. To escape from this stagnant growth, the research sector must be highly productive. However, non-renewable resources are not necessarily dominated by their renewable counterparts in terms of resulting output growth and welfare. We also characterize analytically and quantitatively equilibrium paths to evaluate growth and welfare implications resulting from a resource type switch that is caused by an adverse environmental shock.

    Original languageEnglish
    Pages (from-to)215-229
    Number of pages15
    JournalEconomic Modelling
    Volume70
    DOIs
    Publication statusPublished - 2017

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