Sustainable growth in a resource-based economy: the extraction-saving relationship
نویسندگان
چکیده
The paper presents two new results for the Dasgupta-Heal-Solow-Stiglitz model with an essential nonrenewable resource: (1) the pattern of resource extraction can be more important for sustainable growth than the pattern of saving when the Hotelling Rule modifier is not small enough; (2) the qualitative behavior of the long-run per capita output can be examined along any smooth enough path of extraction for any variable saving rate using the “index of sustainable extraction” introduced in the paper.
منابع مشابه
Sustainable Development, Renewable Resources and Technological Progress
Conflicts between optimality and sustainability are typical in the literature on sustainable development. Using the ‘‘capital-resource’’ growth model, Pezzey and Withagen (1998, Scandinavian Journal of Economics 100 (2), 513–527) have proved that if natural resources are exhaustible, the time-path of consumption is single-peaked, declining from some point in time onwards. This paper extends the...
متن کاملDesigning and Analyzing the New Model of Project Finance by Bank Resource Allocation towards Achieving Sustainable Economic Development
One of the most significant guiding criteria in project design and implementation is sustainable development. Banks play a critical role in environmental protection and the transition to a green economy. Green financing is an innovative financial tool that aims to achieve ecological balance while promoting economic growth. The current study intends to construct and analyze a project financing m...
متن کاملExtractive Economies, Growth, and the Poor
There is mixed evidence regarding the relationship between the extractive intensity of economic activity and the level of human development. Some studies find that mineraland energy-intensive economies have higher levels of development than economies without a substantial extractive sector, whereas others find that they have lower development levels. Those that find the negative relationship co...
متن کاملInstitutional Quality, Natural Resource Rent, and Shadow Economy
Natural resource rent affects countries’ economies through various channels. Revenues from the natural resources sales are expected to boost countries' economic growth, but the economic experience of recent decades reveals the numerous economic problems in these countries, the most important of which may be the increase in the shadow economy size. Moreover, the institutions specify the signific...
متن کاملRelationship between the Rule of Law, Good Governance, and Sustainable Development
This paper reviews the relationship between the rule of law, good governance, and sustainable development as those terms are used by the relevant development organizations; describes the efforts made by various organizations to promote the rule of law and good governance; and addresses the need to strengthen compliance and enforcement for sustainable development. A recent movement, which has re...
متن کامل