The implications of heterogeneous resource intensities on technical change and growth
Open access
Date
2009-10Type
- Working Paper
ETH Bibliography
yes
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Abstract
We analyze an economy in which sectors are heterogeneous with respect to the intensity of natural resource use. Long-term dynamics are driven by resource prices, sectoral composition, and directed technical change. We study the balanced growth path and determine stability conditions. Technical change is found to be biased towards the resource-intensive sector. Resource taxes have no impact on dynamics except when the tax rate varies over time. Constant research subsidies raise the growth rate while increasing subsidies have the opposite effect. We also find that supporting sectors by providing them with productivity enhancing public goods can raise the growth rate of the economy and additionally provide an effective tool for structural policy. Show more
Permanent link
https://doi.org/10.3929/ethz-a-005907386Publication status
publishedJournal / series
Economics Working Paper SeriesVolume
Publisher
ETH Zurich, Center of Economic Research (CER-ETH)Subject
sustainable development; sectoral heterogeneity; directed technical changeOrganisational unit
02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.
Related publications and datasets
Is previous version of: http://hdl.handle.net/20.500.11850/24463
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ETH Bibliography
yes
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