Growth-essential non-renewable resources and limits to growth
نویسنده
چکیده
The standard approach to modelling endogenous technical change in an economy with an essential non-renewable resource ignores that also R&D may need the resource (directly or indirectly). This biases the limits-to-growth discussion in an optimistic direction. Indeed, sustained per capita growth requires stronger parameter restrictions when the resource is directly or indirectly an input in R&D and thus "growth essential" than when it is not. When the resource is “growth essential”, a policy aiming at stimulating long-run growth generally has to reduce the long-run depletion rate. In this sense promoting long-run growth and "supporting the environment" go hand in hand.
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