eprintid: 14028 rev_number: 25 eprint_status: archive userid: 353 dir: disk0/00/01/40/28 datestamp: 2016-11-30 11:04:41 lastmod: 2021-08-27 17:28:08 status_changed: 2016-11-30 11:04:41 type: monograph metadata_visibility: show item_issues_count: 1 creators_name: Aseev, S. creators_name: Manzoor, T. creators_id: 6509 corp_creators: Elena Rovenskaya, Program Director Advanced Systems Analysis title: Optimal Growth, Renewable Resources and Sustainability ispublished: pub divisions: prog_asa divisions: prog_ysp keywords: optimal growth, sustainability, renewable resources abstract: We study a growth model for a single resource-based economy, as an infinite-horizon op-timal control problem. The resource is assumed to be governed by the standard model of logistic growth, and is related to the output of the economy through a Cobb-Douglass type production function with an exogenously driven knowledge stock. The problem involves unbounded controls and the non-concave Hamiltonian. These preclude direct application of the standard existence results and Arrow’s sufficient conditions for optimality. We transform the original optimal control problem to an equivalent one with simplified dy-namics and prove the existence of an optimal admissible control. Then we characterize the optimal paths for all possible parameter values and initial states by applying the ap-propriate version of the Pontryagin maximum principle. Our main finding is that only two qualitatively different types of behavior of sustainable optimal paths are possible de-pending on whether the resource growth rate is higher than the social discount rate or not. date: 2016-11-16 date_type: published publisher: WP-16-017 creators_browse_id: 19 full_text_status: public monograph_type: working_paper place_of_pub: IIASA, Laxenburg, Austria coversheets_dirty: FALSE fp7_project: no fp7_type: info:eu-repo/semantics/book citation: Aseev, S. & Manzoor, T. (2016). Optimal Growth, Renewable Resources and Sustainability. IIASA Working Paper. IIASA, Laxenburg, Austria: WP-16-017 document_url: https://pure.iiasa.ac.at/id/eprint/14028/1/WP-16-017.pdf