Template-Type: ReDIF-Paper 1.0
Title: Technological change in resource extraction and endogenous growth
Author-Name: Martin Stuermer
Author-Email: 
Author-Name: Gregor Schwerhoff
Author-Email: 
Classification-JEL: O30, O41, Q30
Keywords: Non-renewable resources, endogenous growth, extraction technology
Abstract: 	We add an extractive sector to an endogenous growth model of expanding varieties
and directed technological change. Extractive rms reduce the stock of non-renewable resources
through extraction, but also increase the stock through R&D investment in extraction
technology. Our model replicates long-term trends in non-renewable resource markets,
namely stable prices and exponentially increasing extraction, for which we present
data from 1792 to 2009. The model suggests that the development of new extraction technologies
neutralizes the increasing demand for non-renewable resources in industrializing
countries like China in the long term.
Note: 
Length: 48
Creation-Date: 2013-11
Revision-Date: 
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse12_2013.pdf
File-Format: application/pdf
Handle: RePEc:bon:bonedp:bgse12_2013