Economic and environmental effects under resource scarcity and substitution between renewable and non-renewable resources

• Type: Article in International Scientific Journal
• Date: 2013

Authors

S. Silva (Author) Other; Isabel Soares (Author) FEP; Óscar Afonso (Author) FEP

Journal

Title: Energy Policy

Vol. 54

Pages: 113-124

ISSN: 0301-4215

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 34 Citations

ISI Web of Science

Scopus - 41 Citations

Scientific classification

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-005-2XF

DOI: 10.1016/j.enpol.2012.10.069

Abstract (EN): 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.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 12