Resource Depletion and Longrun Economic Growth Based on a Endogenous Growth Model

We extend the endogenous growth model with horizontal innovations to construct a foursector growth model in which we introduce a nonrenewable resource sector.In this setup,we focus on how population growth,increasing nonrenewable resource depletion and degradation,and endogenous technological progress affect longrun economic growth.First,we study the equilibrium of a decentralized economy,derive the solution of the competitive equilibrium and clarify the sufficient condition under which the equilibrium paths exist;more specifically,we perform some comparative static analysis to examine the effect of variables and parameters variations arising from the economic environment on the steadystate growth rate.Finally,we present some concluding remarks and discuss their policy implications.