| Author: | Speck, S. |
| Title: | A neo-Austrian five process model with resource extraction and pollution abatement |
| Journal: | Ecological Economics
1997 : MAY, VOL. 21:2, p. 91-103 |
| Index terms: | ENVIRONMENTAL ECONOMICS MODELS NATURAL RESOURCES POLLUTION ECOLOGY |
| Language: | eng |
| Abstract: | To analyse long-run economy-environment interactions, this article describes a neo-Austrian approach. Resource use and pollution are incorporated as integral components of production processes in the modelling framework. The study starts by reviewing the neo-Austrian capital theoretic approach. The analysis implies the opposite reaction for the dominant view about the effects of higher discount rates concerning the extraction of natural resources: a lower discount rate increases the capital stock. The use of the natural resources is a requirement for the production of the capital good and therefore a lower rate of discount implies an acceleration of the rate of extraction of the natural resource. |
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