ECON 225 Chapter Notes - Chapter 2: Natural Capital, Natural Resource
3 Oct 2018
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Document Summary
Natural resource capital - such as stocks of renewable and non renewable resources. Pollution assimilation in the air, water, and soil. Using natural capital draws down the stocks available for the future. Residuals or waste is create by the use of natural capital. Catching too many sh today may leave fewer to be caught in the future. Processing or raising sh may create ocean pollution. The sh may not be able to reproduce. Sustaining the stocks of natural capital is important to sustain life and the economy. Natural resources economics studies how to e ciently extract or harvest natural resources over time. Some resources are renewable and some are non-renewable () Environmental economics examines the waste products or residuals from production and consumption and how to reduce or mitigate the ow of residuals so they have less damage on the natural environment and depletion of natural capital. Reducing the ow of residual wastes into the environment.
