Climate change and human capital accumulation : educational decisions under resource scarcity and uncertainty
12 Oct 2012-Journal of Natural Resources Policy Research (Taylor & Francis)-Vol. 4, Iss: 4, pp 231-252
TL;DR: In this paper, a stylized decision model of skill acquisition is developed in which farmers face the risk of an irreversible loss of groundwater due to climate change, and a non-linear relationship between skill depreciation and agricultural income is analyzed.
Abstract: Climate change is forcing large scale structural changes in agrarian sectors in the developing world by adversely affecting water resources and threatening the viability of future agriculture. In the most drought affected regions, farmers must explore alternative skills for themselves and their children when faced with unsustainable livelihoods. In this paper, a stylized decision model of skill acquisition is developed in which farmers face the risk of an irreversible loss of groundwater due to climate change. Findings indicate that the risk of groundwater loss promotes higher efforts towards skill acquisition, in general, but skill seeker's own learning capabilities play an important role in determining the eventual outcome. Additionally, groundwater resources are depleted to fund skill acquisition through education, but when rate of skill depreciation is large or differences between skilled wages and agricultural income are small, groundwater depletion is delayed. A non-linear relationship betw...
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TL;DR: In this article, the optimal extraction of renewable groundwater resources when extraction affects the probability of occurrence of an irreversible event is studied, where the term irreversible signifies that the event occurrence renders the resource obsolete.
Abstract: Optimal exploitation of renewable groundwater resources when extraction affects the probability of occurrence of an irreversible event is studied. The term irreversible signifies that the event occurrence renders the resource obsolete. It is found that uncertainty concerning the event occurrence has a profound effect. Under certainty - when the stock level below which the event occurs is known in advance - the optimal state process converges to a unique equilibrium state. Under uncertainty, when the event occurrence level is unknown, we identify equilibrium intervals and show that optimal processes initiated elsewhere converge to a boundary of one of these intervals. Inside an equilibrium interval, the expected loss due to the event occurrence is so high that it does not pay to extract in excess of recharge, even though under certainty doing so would be beneficial. These properties are illuminated by means of an example for which analytic solutions are derived.
116 citations
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01 Jan 1988
Abstract: This paper considers the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development. Three models are considered and compared to evidence: a model emphasizing physical capital accumulation and technological change, a model emphasizing human capital accumulation through schooling, and a model emphasizing specialized human capital accumulation through learning-by-doing.
18,174 citations
"Climate change and human capital ac..." refers background in this paper
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TL;DR: In this article, the authors consider the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development, and compare three models and compared to evidence.
Abstract: Thls paper considers the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development. Three models are considered and compared to evidence: a model emphasizing physical capital accumulation and technological change, a model emphasizing human capital accumulation through schooling, and a model emphasizing specialized human capital accumulation through learning-by-doing.
16,020 citations
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TL;DR: In this paper, the authors describe a class of models in which this type of heterogeneity in growth experiences can arise as a result of cross-country differences in government policy, which can also create incentives for labor migration from slow growing to fast growing countries.
Abstract: The wide cross-country disparity in rates of economic growth is the most puzzling feature of the development process. This paper describes a class of models in which this type of heterogeneity in growth experiences can arise as a result of cross-country differences in government policy. These differences in policy regimes can also create incentives for labor migration from slow growing to fast growing countries. In the class of models that we study growth is endogenous but the technology exhibits constant returns to scale and there is a steady state path that accords with Kaldor's stylized facts of economic development. The key to making growth endogenous in the absence of increasing returns is the presence of a "core" of capital goods that can be produced without the direct or indirect contribution of factors that cannot be accumulated, such as land.
3,048 citations
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TL;DR: In this paper, the authors describe a class of models in which this heterogeneity in growth experiences can be the result of cross-country differences in government policy, which can also create incentives for labor migration from slow-growing to fast-growing countries.
Abstract: The wide cross-country disparity in rates of economic growth is the most puzzling feature of the development process. This paper describes a class of models in which this heterogeneity in growth experiences can be the result of cross-country differences in government policy. These differences can also create incentives for labor migration from slow-growing to fast-growing countries. In the models considered, growth is endogeneous despite the absence of increasing returns because there is a "core" of capital goods that can be produced without the direct or indirect contribution of factors that cannot be accumulated, such as land.
2,917 citations
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TL;DR: Results indicate South Asia and Southern Africa as two regions that, without sufficient adaptation measures, will likely suffer negative impacts on several crops that are important to large food-insecure human populations.
Abstract: Investments aimed at improving agricultural adaptation to climate change inevitably favor some crops and regions over others. An analysis of climate risks for crops in 12 food-insecure regions was conducted to identify adaptation priorities, based on statistical crop models and climate projections for 2030 from 20 general circulation models. Results indicate South Asia and Southern Africa as two regions that, without sufficient adaptation measures, will likely suffer negative impacts on several crops that are important to large food-insecure human populations. We also find that uncertainties vary widely by crop, and therefore priorities will depend on the risk attitudes of investment institutions.
2,582 citations
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