Resource Augmenting Technological Progress and Sustainable Development?

This paper constructs a three-sector growth model with non-renewable environmental resource and a resource augmenting technological progress, and investigates the relation between the sustainability of resource use and growth of the nations. When the resource augmenting technological progress arises, it is shown that, if the agent is patient, then resource extraction is reduced. We can also prove that, in the opposite preference case, resource use is promoted. These results present a significant policy implication for environmental conservation.