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The World’s Largest Open Access Agricultural & Applied Economics Digital Library This document is discoverable and free to researchers across the globe due to the work of AgEcon Search. Help ensure our sustainability. Give to AgEcon Search AgEcon Search http://ageconsearch.umn.edu aesearch@umn.edu Papers downloaded from AgEcon Search may be used for non-commercial purposes and personal study only. No other use, including posting to another Internet site, is permitted without permission from the copyright owner (not AgEcon Search), or as allowed under the provisions of Fair Use, U.S. Copyright Act, Title 17 U.S.C. The Roles of the Environment and Natural Resources in Economic Growth Analysis Michael Toman May 2003 Discussion Paper 02–71 Resources for the Future 1616 P Street, NW Washington, D.C. 20036 Telephone: 202–328–5000 Fax: 202–939–3460 Internet: http://www.rff.org © 2002 Resources for the Future. All rights reserved. No portion of this paper may be reproduced without permission of the authors. Discussion papers are research materials circulated by their authors for purposes of information and discussion. They have not necessarily undergone formal peer review or editorial treatment. The Roles of the Environment and Natural Resources in Economic Growth Analysis Michael Toman Abstract The primary aim of this paper is pedagogical. We first present and discuss a “wiring diagram” framework in order to elucidate the general links between economic growth and "natural capital." After developing the general framework, we develop parallel frameworks applicable to several specific sectors of the economy (agriculture, forestry, and manufacturing). Two appendices provide a mathematical formulation of the economy-wide framework and a brief historical review of the role of natural resources and the environment in economic growth theory. Key Words: economic growth. natural resources. sustainable development JEL Classification Numbers: Q00, O1 Contents 1. Introduction....................................................................................................................... 1 2. A Schematic Representation of the Roles of Natural Resources and the Environment in Economic Growth................................................................................. 3 3. Sectoral-Level Economy-Environment Linkages: Agriculture.................................. 8 4. Sectoral-Level Economy-Environment Linkages: Rotation Forestry and................. 10 Non-Timber Forest Products and Services......................................................................... 10 5. Sectoral-Level Economy-Environment Linkages: Manufacturing............................ 13 6. Conclusions and Empirical Challenges....................................................................... 14 References.............................................................................................................................. 34
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