The Inada conditions for material resource inputs reconsidered
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The Inada conditions for material resource inputs reconsidered. / Baumgärtner, Stefan.
In: Environmental and Resource Economics, Vol. 29, No. 3, 11.2004, p. 307-322.Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - The Inada conditions for material resource inputs reconsidered
AU - Baumgärtner, Stefan
PY - 2004/11
Y1 - 2004/11
N2 - It is shown that the thermodynamic law of conservation of mass, the so-called Materials-Balance-Principle, implies that the marginal product as well as the average product of a material resource input are bounded from above. This means that the Inada conditions, one of the standard assumptions of economic growth theory, when applied to material resource inputs are inconsistent with a basic law of nature. The analysis is based on a model of multi-level production where intermediate goods are produced from elementary resources, and an all-purpose final commodity is produced from these intermediates.
AB - It is shown that the thermodynamic law of conservation of mass, the so-called Materials-Balance-Principle, implies that the marginal product as well as the average product of a material resource input are bounded from above. This means that the Inada conditions, one of the standard assumptions of economic growth theory, when applied to material resource inputs are inconsistent with a basic law of nature. The analysis is based on a model of multi-level production where intermediate goods are produced from elementary resources, and an all-purpose final commodity is produced from these intermediates.
KW - Sustainability sciences, Management & Economics
KW - conservation of mass
KW - Inada conditions
KW - materials balance principle
KW - natural resources
KW - production function
KW - thermodynamics
KW - conservation of mass
KW - inada conditions
KW - materials balance principle
KW - natural resources
KW - production funktion
KW - thermodynamics
KW - Economics
KW - conservation of mass
KW - Inada conditions
KW - materials balance principle
KW - natural resources
KW - production function
KW - thermodynamics
UR - http://www.scopus.com/inward/record.url?scp=7744239041&partnerID=8YFLogxK
U2 - 10.1007/s10604-003-5267-5
DO - 10.1007/s10604-003-5267-5
M3 - Journal articles
VL - 29
SP - 307
EP - 322
JO - Environmental and Resource Economics
JF - Environmental and Resource Economics
SN - 0924-6460
IS - 3
ER -