This paper studies to which extent a firm using a scarce resource input and facing environmental regulation can still manage to have a sustainable growth of output and profits. The firm has a vintage capital technology with two complementary factors, capital and a resource input subject to...

Optimal replacement of a firm's capital is described in the framework of Solow-type vintage capital models. The firm controls the investment into new capital and scrapping of obsolete capital. The embodied technological change involves a continuous component and technological innovations...