It is the cache of ${baseHref}. It is a snapshot of the page. The current page could have changed in the meantime.
Tip: To quickly find your search term on this page, press Ctrl+F or ⌘-F (Mac) and use the find bar.

Renewable Resources, Capital Accumulation, and Economic Growth Jump to Content Jump to Main Navigation

Business Systems Research Journal

The Journal of Society for Advancing Business & Information Technology BIT

2 Issues per year

Open Access

Open Access

Renewable Resources, Capital Accumulation, and Economic Growth

Wei-Bin Zhang 1

Ritsumeikan Asia Pacific University, 1-1 Jumonjibaru, Beppu-Shi, Oita-ken, 874-8577 Japan1

Citation Information: . Volume 2, Issue 1, Pages 24–35, ISSN (Online) 1847-9375, ISSN (Print) 1847-8344, DOI: 10.2478/v10305-012-0019-8, September 2012

Publication History:
Published Online:
2012-09-19

Renewable Resources, Capital Accumulation, and Economic Growth

This paper proposes a dynamic economic model with physical capital and renewable resources. Different from most of the neoclassical growth models with renewable resources which are based on microeconomic foundation and neglect physical capital accumulation, this study proposes a growth model with dynamics of renewable resources and physical capital accumulation. The model is a synthesis of the neoclassical growth theory and the traditional dynamic models of renewable resources with an alternative approach to household behavior. The model describes a dynamic interdependence among physical accumulation, resource change, and division of labor under perfect competition. Because of its refined economic structure, our study enables some interactions among economic variables which are not found in the existing literature on economic growth with renewable resources. We simulate the model to demonstrate the existence of equilibrium points and motion of the dynamic system. Our comparative dynamic analysis shows, for instance, that a rise in the propensity to consume the renewable resource increases the interest rate and reduces the national and production sector's capital stocks, wage rate and level of the consumption good. Moreover, it initially reduces and then increases the capital stocks of the resource sector and the consumption and price of the renewable resource. The stock of the renewable resource is initially increased and then reduced. Finally, labor is redistributed from the production to the resource sector.

Keywords: renewable resource; harvesting; capital accumulation; economic growth

  • Barro, R. J., Sala-i-Martin, X. (1995). Economic Growth. New York: McGraw-Hill, Inc.

  • Brander, J. A., Taylor, M. S. (1998). The Simple Economics of Easter Island: A Ricardo-Malthus Model of Renewable Resource Use. American Economic Review 81, 119-38.

  • Bulter, E. H., Van Kooten, G. C. (1999). Economics of Antipoaching Enforcement and the Ivory Trade Ban. American Journal of Agricultural Economics 81, 453-66.[CrossRef]

  • Burmeister, E., Dobell, A. R. (1970). Mathematical Theories of Economic Growth. London: Collier Macmillan Publishers.

  • Cairns, D. R., Tian, H. L. (2010). Sustained Development of a Society with a Renewable Resource. Journal of Economic Dynamics & Control 24, 2048-61.[Web of Science]

  • Gordon, H. S. (1954). The Economic Theory of a Common Property Resource: The Fishery. Journal of Political Economy 62, 124-42.[CrossRef]

  • Hannesson, R. (2000). Renewable Resources and the Gains From Trade. Canadian Journal of Economics 33, 122-32.[CrossRef]

  • Jinji, N. (2006). International Trade and Terrestrial Open-Access Renewable Resources in a Small Open Economy. Canadian Journal of Economics 39, 790-808.[CrossRef]

  • Milner-Gulland, E. J., Leader-Williams, N. (1992). A Model of Incentives for the Illegal Exploitation of Black Rhinos and Elephants. Journal of Applied Ecology 29, 388-401.[CrossRef]

  • Paterson, D. G., Wilen, J. E. (1977). Depletion and Diplomacy: The North-Pacific Seal Hunt, 1880-1910, in Uselding, P. (Ed.) Research in Economic History. Connecticut: JAI Press.

  • Schaefer, M. B. (1957). Some Considerations of Population Dynamics and Economics in Relation to the Management of Marine Fisheries. Journal of Fisheries Research Board of Canada 14, 669-81.

  • Zhang, W. B. (2005). Economic Growth Theory. London: Ashgate.

Comments (0)

Please log in or register to comment.