Economic Dynamics with Renewable Resources and Pollution

Dam, My and Ha-Huy, Thai and Le Van, Cuong and Nguyen, Thi Tuyet Mai (2019): Economic Dynamics with Renewable Resources and Pollution.

Abstract

This article considers a two-sector economy with externalities. In particular,the analysis involves an industrial sector whose production activities have negative effects on the regeneration of a natural resource in the other sector. Without the usual convexity or the super-modularity structure, we prove that the economy evolves to increase the \textit{net gain of stock}, and establish the conditions ensuring the convergence of the economy in the long run.

• Item Type: MPRA Paper
• Language: English
• Keywords: Ramsey model, two-sector model, renewable resources, pollution
• Subjects: C - Mathematical and Quantitative Methods > C0 - General; C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation

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