Publication Type
Journal Article
Version
publishedVersion
Publication Date
12-1980
Abstract
We develop an optimal growth model that includes several important new features. First, technological change is endogenously related to the growth of 'knowledge.' Investment may be directed either towards physical capital or knowledge (or both). Knowledge becomes an effective substitute for scarce resources by increasing the technical efficiency of resource utilization both for consumption and in capital. Nevertheless, a finite quantity resource must be embodied in capital and a finite flow is required for depreciation. Thus, there is an upper limit to technical efficiency and economic growth is thus ultimately limited by the availability of renewable resources. For a simple aggregate production function it is shown that technical efficiency never approaches unity on an optimal path.
Discipline
Computer Sciences | Technology and Innovation
Research Areas
Information Systems and Management
Publication
Journal of Environmental Economics and Management
Volume
7
Issue
4
First Page
353
Last Page
371
ISSN
0095-0696
Identifier
10.1016/0095-0696(80)90027-3
Publisher
Elsevier
Citation
AYRES, Robert U. and MILLER, Steven M..
The Role of Technological Change. (1980). Journal of Environmental Economics and Management. 7, (4), 353-371.
Available at: https://ink.library.smu.edu.sg/sis_research/26
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/0095-0696(80)90027-3