Natural Resources Dynamics: Exhaustible and Renewable Resources, and the Rate of Technical Substitution

Posted: 1 Jun 2011

See all articles by Giuseppe DiVita

Giuseppe DiVita

University of Catania - Department of Economics and Business

Date Written: May 30, 2011

Abstract

In this paper we study both exhaustible and renewable resources in an endogenous growth model. In particular, we consider the hypotheses in which the rate of technical substitution (RTS) between those two inputs is or is not equal to one. Moreover, we depart from a basic theoretical framework to account for the negative externality constituted by waste accumulation. Finally, a comparative analysis is made between Pigouvian tax and waste recycling, as an environmental policy to correct market failure represented by refuse accumulation.

Keywords: economic growth, endogenous technological progress, exhaustible resources, Pigouvian taxes, renewable natural inputs, rate of technical substitution (RTS), waste recycling

JEL Classification: Q32, O11

Suggested Citation

DiVita, Giuseppe, Natural Resources Dynamics: Exhaustible and Renewable Resources, and the Rate of Technical Substitution (May 30, 2011). Resources Policy, Vol. 31, No. 3, 2006, Available at SSRN: https://ssrn.com/abstract=1855533

Giuseppe DiVita (Contact Author)

University of Catania - Department of Economics and Business ( email )

Corso Italia no. 55
Catania 95129, Catania
Italy
+39 95 230335 (Phone)
+39 95 321654 (Fax)

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