ECON 225 Lecture Notes - Lecture 2: Natural Resource Economics, Natural Capital, Natural Resource
31 Mar 2017
School
Department
Course
Professor
Document Summary
Natural capital is the stock of natural and environmental resources that sustain out ecosystems, economy and well-being of our residents. 3 components: natural resource capital-stocks of renewable and nonrenewable resources (minerals, forests, energy, ecosystems of environmental capital-systems that provide essential environmental goods and services such as our atmosphere and waste assimilation provided by forests, grass and wetlands, land. Used because it merges key element from economy and the natural environment. Capable of producing goods and services (food, motor vehicles, electricity) Depletable-if not enough reinvestment in sustaining capital stock. Using natural capital for people has 3 effects: draws down stock leaving less for tomorrow, residuals (waste) occurs as a result, these waste products may further degrade quality and quantity of remaining stock the. Natural resource economics is the study of how to efficiently extract or harvest the use of natural capital inputs over time. Natural capital inputs comes from renewable and non-renewable resources.
