"This paper investigates the equilibrium growth dynamics of an economy whose production. is based on natural resources and which seeks to maximize welfare to the. local community. This involves determining the optimal trajectories of consumption. in the local area and the use of the environmental resource. Economic dynamics are. affected by negative environmental externalities which are explicitly included as unfavourable. effects in a linear production function. The analysis shows the existence. of local and global indeterminacy."
Linear production function, externalities and indeterminacy in a capital-resource growth model / Carboni, Oliviero Antonio; Russu, Paolo. - In: JOURNAL OF MATHEMATICAL ECONOMICS. - ISSN 0304-4068. - 49:5(2013), pp. 422-428.