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Constant per capita consumption paths with exhaustible resources and decaying produced capital
Institution:1. Department of Mathematics and Statistics, University of Saskatchewan, Saskatoon, Saskatchewan, Canada S7N 5E6;2. Department of Economics, Queen''s University, Kingston, Ontario Canada K7L 4L8;1. School of Statistics, Shanxi University of Finance and Economics, Taiyuan, Shanxi, 030006, PR China;2. School of Management, China Institute for Studies in Energy Policy, Collaborative Innovation Center for Energy Economics and Energy Policy, Xiamen University, Fujian, 361005, PR China;1. College of Resources and Environmental Sciences, Hunan Normal University, Changsha, Hunan 410081, PR China;2. Key Laboratory of High Performance Computing and Stochastic Information Processing (HPCSIP) (Ministry of Education of China), College of Mathematics and Statistics, Hunan Normal University, Changsha, Hunan 410081, PR China;3. School of Economics, Nanjing Audit University, Nanjing Jiangsu, 211815, PR China;4. Institute of Politics and Economics, Nanjing Audit University, Nanjing Jiangsu, 211815 PR China;1. Department of Science and Technology, Division of Communications- and Transport Systems, Linköping University, SE-601 74 Norrköping, Sweden;2. Department of Management and Engineering, Division of Production Economics, Linköping University, SE-581 83 Linköping, Sweden;3. Department of Management and Engineering, Division of Energy Systems, Linköping University, SE-581 83 Linköping, Sweden;1. University of Maribor, Faculty of Chemistry and Chemical Engineering, Smetanova 17, SI-2000, Maribor, Slovenia;2. Sustainable Process Integration Laboratory (SPIL), NETME Centre, Faculty of Mechanical Engineering, Brno University of Technology, Technická 2896/2, 616 00, Brno, Czech Republic;1. Center for Energy and Environment Policy Research, Beijing Institute of Technology, Haidian District, Beijing, China;2. School of Management and Economics, Beijing Institute of Technology, Haidian District, Beijing, China;3. China Urban Sustainable Transport Research Center, China Academy of Transportation Sciences, Chaoyang District, Beijing, China;4. Business School, Beijing Normal University, Haidian District, Beijing, China;5. Center for Climate and Environmental Policy, Chinese Academy of Environmental Planning, Ministry of Ecology and Environment of the People''s Republic of China, Chaoyang District, Beijing, China
Abstract:We introduce decay in produced capital and exogenous technical progress to the recent “Solow Model” of Asheim et al. with population growth and observe the possible collapse of the economy given too high a rate of decay. “Enough” technical progress can restore sustainable per capita consumption.
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