Arbeitspapier
Fuel for economic growth?
We set up an endogenous growth model in which the efficiency of both capital and fossil energy can be improved, whereas the efficiency of one alternative energy source is limited. With capital and energy as complements, there exist two steady states: one stagnant where energy is fully derived from the alternative energy source, and one with balanced growth where energy is fully sourced from fossil fuel. Heterogeneity in initial TFP levels can generate the Great Divergence. The demand for fossil fuel in technologically advanced countries drives up its price and makes fossil fuel too costly in less advanced countries that choose the alternative and stagnant energy input.
- Language
-
Englisch
- Bibliographic citation
-
Series: Sveriges Riksbank Working Paper Series ; No. 299
- Classification
-
Wirtschaft
Macroeconomic Analyses of Economic Development
Industrialization; Manufacturing and Service Industries; Choice of Technology
Technological Change: Choices and Consequences; Diffusion Processes
One, Two, and Multisector Growth Models
Economywide Country Studies: General
- Subject
-
Growth
Malthusian stagnation
Industrial Revolution
Great Divergence
Technological progress
- Event
-
Geistige Schöpfung
- (who)
-
Gars, Johan
Olovsson, Conny
- Event
-
Veröffentlichung
- (who)
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Sveriges Riksbank
- (where)
-
Stockholm
- (when)
-
2015
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Gars, Johan
- Olovsson, Conny
- Sveriges Riksbank
Time of origin
- 2015
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