ECON 2J03 Lecture Notes - Lecture 2: Natural Capital
Document Summary
It sustains life, economic activity and well-being: natural capital is capable of producing goods and services (food, motor vehicles, electricity, and more intangible goods such as well being or quality of life) over time. It provides inputs into everything we consume and enjoy on the plant: natural capital is depletable if there is not enough reinvestment in sustaining it. When human activity or natural forces run down the stock of natural capital without any reinvestment in the capital stock, natural capital will decline and no longer be able to produce goods and services over time. Sustaining the stocks of natural capital is important to sustain life and the economy. Natural resource economics: natural resource economics studies how to efficiently extract or harvest natural resource over time, the natural capital inputs come from stocks of renewable and non-renewable resources.
