GEOG 2LE3 Lecture Notes - Lecture 13: Ecosystem Services, New York Mercantile Exchange, London Metal Exchange
4 Jun 2018
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Lecture 13 - Nature as Commodity
Commodifying Nature
• Coodifiatio is the poess though hih e goods o seies eoe aailale fo
exchange in the capitalist market.
• Nature is considered a resource base from which commodities are made.
Natural resources = components of the nature that are useful to humans (after extraction and
processing/ transformation).
• sign of progress
• economic growth
• development
-Nature is necessary for the accumulation of wealth (profit) and meeting economic goals.
Natues Eooi Value
1. Price is established based on supply and demand in the marketplace.
-Coodit Ehages: effiiet ehais fo estalishig the alue of atual a ateials.
Examples of Commodities Exchanges:
Agriculture
• Chicago Board of Trade
• Dalian Commodity Exchange (China)
Metals
• London Metal Exchange
Energy
find more resources at oneclass.com
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• New York Mercantile exchange
Supply, Demand and Price
• The volume of a commodity in the market along with the volume of demand will determine the
equilibrium price.
• An increase in price for a commodity can increase the supply, only to bring the price back down
➢ e.g. the pie of tua ieases i supeakets, fishee apitalize, ig suppl up,
price falls
• A restriction of supply can push the prices of commodities higher.
➢ e.g. OPEC (Organization of Petroleum Exporting Countries) restricts oil supply and price
increases
• A change in demand for a commodity can move a price.
➢ e.g. Chias ieased dead fo a ateials has ieased pies
Natues Eooi Value
2. Price does not take into consideration the broader environmental impacts of extracting and
using a resource (unless there is a cost to conforming to government regulations).
➢ works to obscure the environmental costs of a commodity
Ecosystem Services Approach
• an appoah that ioles the uatifiatio of ipats assoiated ith eioetal
degradation
• assigns value to the services ad eefits poided to a itat ad uhaed atual
environment
• services can take many forms: provisioning, regulating, cultural, supporting
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Commodifying nature: co(cid:373)(cid:373)odi (cid:272)atio(cid:374) is the p(cid:396)o(cid:272)ess th(cid:396)ough (cid:449)hi(cid:272)h (cid:374)e(cid:449) goods o(cid:396) se(cid:396)(cid:448)i(cid:272)es (cid:271)e(cid:272)o(cid:373)e a(cid:448)aila(cid:271)le fo(cid:396) exchange in the capitalist market, nature is considered a resource base from which commodities are made. Natural resources = components of the nature that are useful to humans (after extraction and processing/ transformation). sign of progress: development economic growth. Nature is necessary for the accumulation of wealth (profit) and meeting economic goals. Natu(cid:396)e(cid:859)s e(cid:272)o(cid:374)o(cid:373)i(cid:272) value: price is established based on supply and demand in the marketplace. Co(cid:373)(cid:373)odit(cid:455) e(cid:454)(cid:272)ha(cid:374)ges: e (cid:272)ie(cid:374)t (cid:373)e(cid:272)ha(cid:374)is(cid:373) fo(cid:396) esta(cid:271)lishi(cid:374)g the (cid:448)alue of (cid:374)atu(cid:396)al (cid:396)a(cid:449) (cid:373)ate(cid:396)ials. Agriculture: chicago board of trade, dalian commodity exchange (china) London metal exchange: new york mercantile exchange. The volume of a commodity in the market along with the volume of demand will determine the equilibrium price: an increase in price for a commodity can increase the supply, only to bring the price back down.
