We study long-run growth in a multi-sector economy with non-renewable resource use and endogenous innovations. Unlike recent capital resource models, we find that poor input substitution need not be detrimental for sustainable growth; on the contrary, combined with resource depletion it fosters...

The paper provides a theoretical explanation for the inverted U-shaped relation between pollution and income often found in empirical research (Environmental Kuznets Curve). We model the transition in the pollution pattern as a change in general purpose technologies and investigate how it...

We argue that the sustainable use of natural resources has to be placed in a dynamic perspective, both in theoretical modelling and in applied research. This can be achieved by applying endogenous growth theory and other recent advances in dynamic theory. In this paper we discuss five...