Sources of economic growth in models with non-renewable resources

This paper re-examines the conditions under which endogenous economic growth can emerge in neoclassical models with non-renewable resources. Our analysis is based on a general production function encompasses Cobb–Douglas specification. We show that possible only when elasticity of substitution between effective labour input and resource constant equal to one. If this does not hold (as some empirical studies suggested), then solely driven by an exogenous technological factor. also assumption will affect model’s policy implications regard taxation.