Capital Accumulation and Non-Renewable Energy Resources: A Special Functions Case
CORE Discussion Paper No. 2007/9
55 Pages Posted: 22 Mar 2007
Date Written: February 2007
In this paper, we study the implications of assuming different technologies for physical capital accumulation and consumption. More precisely, we assume that physical capital accumulation is relatively more energy-intensive than consumption. We conclude that this hypothesis, together with the possibility of technical progress (in particular, energy-saving technical progress), has important implications on economic growth. This model entails some technical difficulties. However, we provide a full analytical characterization of both short and long-run dynamics using Gauss Hypergeometric functions.
Keywords: Non-renewable resources, Energy-saving technical progress, Special functions
JEL Classification: C68, O30, O41, Q30, Q43
Suggested Citation: Suggested Citation