Technological change in resource extraction and endogenous growth

Arbeitspapier

We add an extractive sector to an endogenous growth model of expanding varieties and directed technological change. Extractive firms reduce the stock of non-renewable resources through extraction, but also increase the stock through R&D investment in extraction technology. Our model replicates long-term trends in non-renewable resource markets, namely stable prices and exponentially increasing extraction, for which we present data from 1792 to 2009. The model suggests that the development of new extraction technologies neutralizes the increasing demand for non-renewable resources in industrializing countries like China in the long term.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Bonn Econ Discussion Papers ; No. 12/2013

Classification and Topics

• Classification: Wirtschaft ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General ; One, Two, and Multisector Growth Models ; Nonrenewable Resources and Conservation: General
• Subject: Non-renewable resources ; endogenous growth ; extraction technology

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stuermer, Martin ; Schwerhoff, Gregor
• Event: Veröffentlichung
• (who): University of Bonn, Bonn Graduate School of Economics (BGSE)
• (where): Bonn
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/92984
• Last update: 10.03.2025, 11:42 AM CET