Complementarity, impatience, and the resilience of natural-resource-dependent economies

A-Tier
Journal: Journal of Environmental Economics and Management
Year: 2013
Volume: 66
Issue: 1
Pages: 15-32

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study how society's preferences affect the resilience of economies that depend on more than one type of natural resource. In particular, we analyze whether the degree of complementarity of natural resources in consumer preferences may give rise to multiple steady states and path dependence even when resources are managed optimally. We find that, for a given social discount rate, society tends to be less willing to buffer exogenous shocks if resource good are complements in consumption than if they are substitutes. The stronger the complementarity between the various types of natural resources, the less resilient the economy is, and even more so the higher is the social discount rate.

Technical Details

RePEc Handle
repec:eee:jeeman:v:66:y:2013:i:1:p:15-32
Journal Field
Environment
Author Count
3
Added to Database
2026-01-24