| ID | 118828 |
| Title Proper | Economic and environmental effects under resource scarcity and substitution between renewable and non-renewable resources |
| Language | ENG |
| Author | Silva, Susana ; Soares, Isabel ; Afonso, Oscar |
| Publication | 2013. |
| Summary / Abstract (Note) | We build a general equilibrium model with renewable (non-polluting) and non-renewable (polluting) resources to analyze the interaction and compatibility between economic growth and a cleaner environment. The study is in two phases: (i) resource extraction/production costs are constant; (ii) resource producers invest in knowledge to reduce extraction/production costs, endogenizing technical change. With constant costs, there is a permanent trade-off between economic growth and a cleaner environment. With endogenous technical change, it is possible to harmonize more output and less emissions by replacing non-renewable resources for renewable ones. We also conduct a sensitivity analysis to explore three specific policy actions. With constant costs, the best policy action is the imposition of a higher renewable resources standard, while with endogenous technical change, under certain conditions, all policy interventions may benefit both the economy and the environment. |
| `In' analytical Note | Energy Policy vol. , No.54; Mar 2013: p.113-124 |
| Journal Source | Energy Policy vol. , No.54; Mar 2013: p.113-124 |
| Key Words | Renewable and Non - Renewable Resources ; Pollution ; Economic Growth |