Capital depreciation and waste accumulation in capital-resource economies

Yamaguchi, Rintaro and Ueta, Kazuhiro (2010): Capital depreciation and waste accumulation in capital-resource economies. Forthcoming in: Applied Economics Letters

Abstract

In this note, we investigate how the depreciation of a manufactured stock and the related accumulation of a waste stock can alter the optimal path of the capital-resource economy. It is shown that the optimal consumption path is aected by how the disuse pattern of the manufactured stock in question is distributed, specifically with forward-looking terms.

• Item Type: MPRA Paper
• Language: English
• Keywords: capital depreciation; waste accumulation; capital-resource model; optimal control
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q32 - Exhaustible Resources and Economic Development; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis

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