The Depletion of Non-renewable Resources for Non-sustainable Externalities as an Economic Development Policy***

The significance of non-renewable resources in economic development is an on-going debate between optimists and pessimists, but what insights does it provide for contemporary societies who need to choose between alternative growth paths? This paper aims to explain the depletion of non-renewable resources within the concept of externalities in order to determine the range of externalities for future generations by broadening the analysis of economic growth to sustainable development. The extensive depletion of non-renewable resources, particularly oil, along with a higher level of consumption will have a significant impact on the economic development of future generations. Sooner or later economies will have to rely more and more on the input of renewable resources, but the timing of this transition depends on a clear definition of non-renewable and depletable resources. The costs of transforming an economy from one that depletes non-renewable resources to one that is in accordance with sustainable development are considered negative externalities for future generations. The main questions of this paper are “What is the impact of the depletion of non-renewable resources on sustainable economic development?” and “Under what conditions will current efforts of employing renewable resources state negative or positive externalities for future generations?” Fina lly, the research findings based on qualitative analysis clarifies the reasons and the extents of taking sustainability into account as well as points to difficulties of implementing strategies for a sustainable economic development.