Principles of Regional Science by Zheng Wang

Author:Zheng Wang
Language: eng
Format: epub
Publisher: Springer Singapore, Singapore

Parameter

Meaning

Initial value

b

The sale of resources accounted for the proportion of total resources b

0.1

α 1

Capital elasticity α 1

0.6

P

Resource price p

10

Total amount of renewable resources N ∗ 1

10,000

η 1

Regional technical progress factor η 1

0.3

ψ 1

Resource spillover coefficient ψ 1

0.2

K 1

Capital K 1 (can be given range)

0–50,000

First, consider the impact of ψ 1 value on regional resource spillover. Because of the negative effect of capital accumulation, when capital is increasing, the amount of resources can be reduced. The greater the ψ 1, the greater the intensity of the capital for resource regeneration, the more seriously the resource decreases with the increase of capital, so it can be predicted that when the ψ increases, it will lead to the zero point of resource spillover. Figure 4.8 shows the situation of ψ 1 = 0.1, 0.2, 0.3; with the increase of ψ 1, the curve is more rapid than the zero point of resource spillover, and region 1 will be lost in the resource trade. That is to say, the weaker the resource regeneration ability, the more easily it can be damaged in the regional trade. Differing from general understanding, the simulation reveals that the function of the regenerative capacity is nonlinear, and the ability to improve the regeneration of the resources could be significantly improved.

Fig. 4.8The effect of different values on resource spillover

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