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

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Complementarity, impatience, and the resilience of natural-resource-dependent economies. / Quaas, Martin Friedrich; van Soest, Daan P.; Baumgärtner, S.

In: Journal of Environmental Economics and Management, Vol. 66, No. 1, 01.07.2013, p. 15-32.

Research output: Journal contributionsJournal articlesResearchpeer-review

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@article{30428564581d4c04b0aeaeb9ce6c4955,
title = "Complementarity, impatience, and the resilience of natural-resource-dependent economies",
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.",
keywords = "Sustainability sciences, Management & Economics, Resilience, substitutes and complements, discounting, multiple steady states, natural resources, path dependence, regime shifts, tipping points, Discounting, Multiple steady states, Natural resources, Path dependence, Regime shifts, Resilience, Substitutes and complements, Tipping points",
author = "Quaas, {Martin Friedrich} and {van Soest}, {Daan P.} and S. Baumg{\"a}rtner",
year = "2013",
month = jul,
day = "1",
doi = "10.1016/j.jeem.2013.02.001",
language = "English",
volume = "66",
pages = "15--32",
journal = "Journal of Environmental Economics and Management",
issn = "0095-0696",
publisher = "Elsevier B.V.",
number = "1",

}

RIS

TY - JOUR

T1 - Complementarity, impatience, and the resilience of natural-resource-dependent economies

AU - Quaas, Martin Friedrich

AU - van Soest, Daan P.

AU - Baumgärtner, S.

PY - 2013/7/1

Y1 - 2013/7/1

N2 - 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.

AB - 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.

KW - Sustainability sciences, Management & Economics

KW - Resilience

KW - substitutes and complements

KW - discounting

KW - multiple steady states

KW - natural resources

KW - path dependence

KW - regime shifts

KW - tipping points

KW - Discounting

KW - Multiple steady states

KW - Natural resources

KW - Path dependence

KW - Regime shifts

KW - Resilience

KW - Substitutes and complements

KW - Tipping points

UR - http://www.scopus.com/inward/record.url?scp=84880599521&partnerID=8YFLogxK

U2 - 10.1016/j.jeem.2013.02.001

DO - 10.1016/j.jeem.2013.02.001

M3 - Journal articles

AN - SCOPUS:84880599521

VL - 66

SP - 15

EP - 32

JO - Journal of Environmental Economics and Management

JF - Journal of Environmental Economics and Management

SN - 0095-0696

IS - 1

ER -