Essay on Natural Resources, Economic Growth, Development and Equity PDF Download

Author: Thi Tuyet Mai Nguyen
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Languages : en
Pages : 0

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Book Description
Sustainable development is an attractive topic for economists. In the literature on economic growth and sustainable development, there are two core approaches used in most discussions. The first one is recognizing the importance of natural resources as well as strategies for using these resources for economic development in the context of their depletion. The second one is the issue of intergenerational equity in which the needs of the present generations can be assured without compromising the ability to meet the needs of the future generation. My thesis aims to study theoretical models on natural resources, economic growth, development and equity. Chapter I considers a two-sector economy with externalities. We study a theoretical model that investigates the relationship between the optimal dynamics of economic growth using renewable resources and environmental quality. In this model, the industrial sector uses intermediate inputs to produce a final consumption good, and another sector, called the exploitation sector, engages in exploiting a renewable resource. This resource can be sold directly at an exogenously determined market price, generating an additional source of income. We also take into account the negative externalities of the polluting industrial sector on the regenerating capacity of the renewable resource sector. Without the usual convexity or the super-modularity, we prove that the economy evolves to increase the net gain of stock some day in the future. This property ensures that in the long run, the economy gets very close to a steady state. We also establish the conditions ensuring the convergence of the economy in the long run. For sustainable development, one of the most difficult problems relying on criteria for Social Welfare Function is the reconciliation between equality and efficiency. The Anonymity Axiom states that the social ordering is invariant to the information regarding individual orderings. The Pareto Axiom imposes that if at least one generation increases its utility then the social welfare must improve. However, there is no SWF which satisfies both the Anonymity and Pareto Axioms. To overcome this difficulty, some authors propose several approaches to mitigate these axioms. Therefore, a lot of criteria have been introduced such as: Dominance, Weak Dominance, Weak Pareto, Monotonicity and so on. In the second chapter of my thesis, we have revisited some properties of a SWF in the literature taking into account the continuity of this SWF under different topologies. [...] Furthermore, we propose the notions weak no-dictactorship and strong no-dictatorship of the present and the future following the spirit of Chichilniski and provide a detailed description for parameters characterizing the two No dictatorship. In chapter 3, we study an inter-temporal optimization problem using a criterion which is a combination of Ramsey and Rawls criteria. A detailed description of the saving behavior through time is provided. [...] The last chapter develops a theoretical model to access the determinants of the effectiveness of Special Economic Zone and the conditions for its implementation. The results of this study show that there is a threshold such that for all the initial savings of a country above this level, it will be optimal to invest in new technology. Moreover, several factors including the price of technological capital, the wage of high-skilled labor, the initial income of the economy and the total factor productivity in the SEZ sector, endogenously determine this threshold. This chapter also proposes a service sector as an additional source to the accumulated capital, that can help the country pass this threshold.