Energy Supply and the Sustainability of Endogenous Growth
BC3 Working Paper Series 2010-10
29 Pages Posted: 20 Jul 2010
Date Written: July 19, 2010
The paper provides an introduction to energy, respective resource, use within the framework of endogenous growth models. We provide an overview of different modeling approaches as well as intuition with respect to the results obtained. We consider the source problem, i.e., the supply of energy, as well as the sink problem, i.e., pollution generated by the consumption of energy resources. The introduction to the theoretical framework shortly discusses the use of neoclassical versus endogenous growth models and also points to the implications of the different types of endogenous growth approaches. We additionally give an introduction to CGE-models that include energy use and present an example of a numerical solvable model in detail. The paper closes with an outlook on future research.
Keywords: endogenous growth, energy, resources, pollution, CGE-models
JEL Classification: Q1, Q3, Q4, O4
Suggested Citation: Suggested Citation