8.2: resources use in society Flashcards
why do ecologically minded economists describe resources as “natural capital” ?
renewable and replenishable resources are forms of wealth that can produce “natural income”
indefinitely in the form of valuablegoods and services.
e.g marketable commodities such as timber and grain (goods)
ecological services such as the flood and erosion protection provided by forests (services).
what is renewable natural capital
renewable natural capital can be generated and/or replacedas fast as it is being used.
e.gliving species and ecosystems use solar energy and photosynthesis, as well as non-living items, such as groundwaterand the ozone layer.
what is non-renewable natural capital
Non-renewable natural capital is either irreplaceable or can only be replaced over geological timescales; for example, fossil fuels, soil and minerals.
how does renewable natural capital become unsustainable?
If renewable natural capital is used beyond its natural income this use becomes unsustainable.
what is sustainability?
Sustainability isliving, within the means of nature, on the ”interest” or sustainable income generated by natural capital. So using the globalresources at the rate that allows natural regeneration and minimizes damage to the environment.
what kind of value is provided by the goods (such as tangible products) and services (such as climate regulation) from natural capital?
This value may be aesthetic, cultural, economic, environmental, ethical, intrinsic, social, spiritual or technological.
what is intrinsic values
Values that are not determined by their potential use to human, their value is given vary by culture, religion, etc. E.g. a statue.
what is economic values
value that are determined from the market price of the good and services a resources produce.
what is ecological values
value that have no formed market price but are essential to human e.g. photosynthesis
what is aesthetic values
no market price, similar to ecological value,(basically things that look good). E.g. landscape
why is the concept of natural capital dynamic?
the value of resources changes over time and with various other factors.
During the Stone Age, fossil fuels were worthless because the internal-combustion engine had not yet been invented, but arrowheads were very valuable because they allowed people to hunt and therefore eat.
In modern times, we need fossil fuels to maintain many of the processes in society (communication, transportation, electricity production), so that fossil fuels have a high economic value now, but because we’ve developed many different ways to get enough food to eat, the arrowheads are no longer economically valuable.
example of how renewable natural capital has been mismanaged
African forests are significantly shrinking. Trees and vegetation cover are being cut down for various uses. Most of the people use firewood as the energy source. Also, most of people’s livelihood depends on forests as well as land, leading to the increased deforestation. Generally it is one the environmental challenges in Malawi and developing countries at large. For example in Malawi about 10,000 ha. forests were being deforested annually between 1981 to 1985. This number continues through today.
example of how non-renewable natural capital has been mismanaged
At present, the most important energy sources used by the Indian population are non-renewable sources of energy. Indian economy is largely based on fossil fuels, minerals and oil. The value increases because of the large demand, but the supply is decreasing. This has resulted in more efforts to drill and search other territories. The environment is being abused and this depletion of resources is one way of showing the effects. The consumption of petroleum has multiplied itself almost thirty times in the post-independence era
