Natural resources and the marshallian effects of input-reducing technological changes

Input-reducing technologies are often cited as potential solutions to the pressure for over-harvesting natural resources. The underlying implicit assumption that technological change reducing the Hicksian input demand also reduces the Marshallian input demand neglects the impacts of input-reducing t...

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Bibliographic Details
Published in:Journal of environmental economics and management 1992-11, Vol.23 (3), p.201-215
Main Author: Darwin, R.F
Format: Article
Language:English
Subjects:
ANALISIS DE COSTOS
ANALISIS DE INSUMO-PRODUCTO
ANALYSE DES COUTS
ANALYSE INPUT OUTPUT
CAMBIO TECNOLOGICO
CHANGEMENT TECHNOLOGIQUE
ECONOMETRIA
ECONOMETRIE
Economic models
Economic theory
FONCTION DE DEMANDE
FUNCIONES DE LA DEMANDA
Functions
GRUME
Lumber industry
Natural resources
OFERTA Y DEMANDA
OFFRE ET DEMANDE
PRECIOS
PRIX
Statistical analysis
Studies
Technological change
TROZAS
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Summary:Input-reducing technologies are often cited as potential solutions to the pressure for over-harvesting natural resources. The underlying implicit assumption that technological change reducing the Hicksian input demand also reduces the Marshallian input demand neglects the impacts of input-reducing technological changes on Marshallian supplies. This reasearch shows that Marshallian supply effects generally offset the impacts of technological change on Hicksian input demands, and, if the offset is large enough, Marshallian input demands could even increase. As an example, I statistically determine the extent increased technological efficiency in lumber production reduced the demand for sawlogs in the Pacific Northwest. The statistical results indicate that input-reducing technological changes did not reduce the overall Marshallian demand for sawlogs. Resource conservation policies which rely solely on the implementation of input-reducing technologies may be ineffective or even counterproductive.
ISSN:0095-0696
1096-0449
DOI:10.1016/0095-0696(92)90001-D