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A dynamic input-output model with renewable resources

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Abstract

The paper studies a generalisation of the dynamic Leontief input-output model. The standard dynamic Leontief model will be extended with the balance equation of renewable resources. The renewable stocks will increase regenerating and decrease exploiting primary natural resources. In this study the controllability of this extended model is examined by taking the consumption as the control parameter. Assuming balanced growth for both consumption and production, we investigate the exhaustion of renewable resources in dependence on the balanced growth rate and on the rate of natural regeneration. In doing so, classic results from control theory and on eigenvalue problems in linear algebra are applied.

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Authors and Affiliations

  1. Institute of Business Economics, Corvinus University of Budapest, Budapest, Hungary

    Imre Dobos

  2. Department of Mathematics, Corvinus University of Budapest, Budapest, Hungary

    Peter Tallos

Authors
  1. Imre Dobos
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  2. Peter Tallos
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Corresponding author

Correspondence to Imre Dobos.

Additional information

Imre Dobos gratefully acknowledges financial supports by TÁMOP-4.2.1.B-09/KMR-2010-0005 research program and Deutscher Akademischer Austauschdienst (DAAD).

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Dobos, I., Tallos, P. A dynamic input-output model with renewable resources. Cent Eur J Oper Res 21, 295–305 (2013). https://doi.org/10.1007/s10100-011-0235-2

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  • DOI: https://doi.org/10.1007/s10100-011-0235-2

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