Economic Growth with Nonrenewable and Sustainable Energy

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Published: Dec 1, 2024
DOI: https://doi.org/10.56476/jed.v49i2.26
Keywords:
economic growth, nonrenewable energy, sustainable energy, U.S. energy

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Henry Thompson
Auburn University
https://orcid.org/0000-0002-7693-0349

Abstract

Optimal depletion of nonrenewable energy added to the neoclassical model dampens economic growth as its price rises at the rate of the capital return. The present paper introduces sustainable energy requiring its own capital with the Inada condition requiring both energy inputs are necessary for production. Production is developed in terms of factor shares and price elasticities. Investment in sustainable energy offers relief from the rising nonrenewable price but lowers consumption or capital growth. Simulations of the U.S. economy foresee a smooth transition with growth paths depending on the two saving rates and factor price substitution.

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How to Cite
Thompson, Henry. 2024. “Economic Growth With Nonrenewable and Sustainable Energy”. Journal of Energy and Development 49 (2):227–239. https://doi.org/10.56476/jed.v49i2.26.
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Vol. 49 No. 2 (2024): Journal of Energy and Development
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Articles
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Author Biography

Henry Thompson, Auburn University

Henry Thompson is an Emeritus Professor of Economics at Auburn University. His research focuses on extending the scope and depth of international trade theory. He has published research in over 150 academic articles ranked in the top 5% by Repec. His textbook International Economics: Global Markets and Competition with World Scientific is now in its 5th edition. He received his Ph.D. from the University of Houston in 1981 under Roy Ruffin. Thompson was a founding member of the International Economics and Finance Society. In energy economics, he publishes research and works as a consultant. He and his artist wife Madeline Simos regularly spend some months in Greece every year.

‪Henry Thompson‬ - ‪Google Scholar‬

Henry Thompson | Auburn University - Academia.edu

Henry THOMPSON | Professor Emeritus | PhD Economics, University of Houston | Auburn University, Auburn | AU | Department of Economics | Research profile

 

 

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