The Problem of Non-Renewable Energy Resources in the Production of Physical Capital
CORE Discussion Paper No. 2007/8
18 Pages Posted: 22 Mar 2007
Date Written: February 2007
This paper studies the possibilities of technical progress to deal with the growth limit problem imposed by the usage of non-renewable energy resources, when physical capital production is relatively more energy-intensive than consumption. In particular, this work presents the conditions under which energy-saving technologies can sustain long-run growth, although energy is produced by means of non-renewable energy resources. The mechanism behind that is energy efficiency.
Keywords: Nonrenewable resources, Energy-saving technical progress, Economic growth
JEL Classification: O30, O41, Q30, Q43
Suggested Citation: Suggested Citation