Renewable and non-renewable energy-based output growth along balanced-growth path
Felix Ramandray  1@  
1 : Department of Economics, Ege University
35100 Bornova-Izmir -  Turquie

Exhaustible energy source takes important place in the share of world energy consumption to the detriment of renewable energy. This paper investigates output growth based on renewable and non-renewable energy along balanced growth path. As a result, we find that output based on renewable energy grows faster than that based on non-renewable one, and per capita output associated with non-renewable energy would follow decreasing path if the technology is not sufficient to offset the drag in non-renewable energy use, whereas that associated with renewable energy would be increasing. The system associated with non-renewable energy-based output would have saddle-path stability if the share of capital stock is high enough. That of renewable energy-based output shows saddle-path stable without any condition. Further results will be discussed in the analysis.


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