Resilience of natural-resource-dependent economies

Description

We study how human preferences affect the resilience of economies that de-
pend on more than one type of natural resources. In particular, we analyze whether the degree of substitutability of natural resources in consumer needs may give rise to multiple steady states and path dependence even when resources are managed optimally. This is a major shift in the interpretation and analysis of resilience, from viewing (limited) resilience as an objective property of the economy-environment system to acknowledging its partially subjective, preference-based character. We find that for a given set of initial conditions, society is less willing to buffer exogenous shocks if resource goods are
complements in consumption than if they are substitutes. Hence, the stronger the complementarity between the various types of resource goods, the less resilient the economy.

gemeinsam mit Martin F. Quaas und Daan van Soest

Period	11.09.2011 → 13.09.2011
Event title	13th Annual BIOdiversity and Economics for Conservation Conference - BIOECON 2013: Resource Economics, Biodiversity Conservation and Development
Event type	Conference
Conference number	13
Sponsor	BIOdiversity and Economics for Conservation (BIOECON)
Location	Genf, SwitzerlandShow on map
Degree of Recognition	International