Introduction to Sustainable Resource Use and Economic Dynamics.

There are many compelling reasons why environmental and resource problems should be placed in a dynamic perspective. Traditionally, resource economics needs to study the dynamics of depletion of natural resources and environmental services. Current use of non-renewables, such as oil reserves, determines future resource availability. Renewable natural resources regenerate in a dynamic ecological process, which is disturbed by commercial harvesting activities. Similarly, environmental economics has to deal with pollution dynamics when pollution entails long-lasting cumulative effects in soil and marine resources or in the atmosphere. Looking at the impact of resource scarcity and pollution for the economy as a whole we additionally find that macroeconomic dynamics become highly relevant. To offset the increasing scarcity of natural resources and to promote sustainable development, capital accumulation and technological change are essential. In particular, the development and adoption of new technologies allow improving resource and abatement efficiency. Finally, social dynamics are important: the behaviour of polluters or natural resource users, as well as policymakers, changes over time because of learning behaviour, or because of changing perceptions, the building-up of new information, and the reaction thereupon. [ABSTRACT FROM AUTHOR]