Overcoming the natural resource constraints through dedicated R&D efforts: contrasting the non-renewable and the renewable resource economies
by Jean-Pierre Amigues, Ngo Van Long, Michel Moreaux
International Journal of Global Environmental Issues (IJGENVI), Vol. 4, No. 1/2/3, 2004

Abstract: There exist specific factor scarcities if, and only if, the inputs of the production process are not perfect substitutes. Under the extreme assumption of strict factor complementarity between labour and resources in the production of some aggregate consumption good, and assuming that the technical coefficient of the resource input can be improved through a dedicated research effort, we compare the optimal research policy in a pure non-renewable resource economy to the optimal research policy in a pure renewable resource economy. We show that they are strongly contrasted.

Online publication date: Sun, 19-Sep-2004

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