The fourth and fifth equations express a cost-price balance of a recycling process and a consumption-commodity production process which inputs a secondary material respectively.
This effect is, however, offset by a rapid increase in the activity level of a brand-new capital-commodity production process when the growth rate is very high, since there is no room for an increase in per capita consumption, and therefore, waste.
Given a real wage rate and a consumption vector, the model indicates that the paths of prices, royalties, rents, intensities of commodity production, and resource-searching processes can be determined once a sequence of profit rates as well as the initial amounts of commodities and resources are given.
Based on several assumptions made for the study's model, a sufficient and necessary condition was given for the paths of endogenous variables, which are prices of commodities, royalties, rents, intensities of commodity production and resource-searching processes, as well as the amounts of exhaustible resources at each time.
Konijn [11] assumes that industries can produce commodities according to several production processes and that the same production process can be used by other industries.
These unpriced natural capital costs are generally internalized until events like floods or droughts cause disruption to production processes or commodity price fluctuation.
Microbial riboflavin (vitamin B2) production processes converting commodity fermentation substrates like monomeric or oligomeric carbohydrates or vegetable oils to riboflavin have almost completely replaced the traditional chemical methods.
The first commodity is used only as an input to production processes (i.e., a commodity used as circulating capital only), and the second one is used only for consumption.
Hence, if the left-hand side of the first inequality above is smaller than that in the second, then the second production process is chosen for commodity production.
I assume that the second and the third production processes produce commodities which are regarded as identical at the consumption stage.
