Human Populations:Human Populations:Resources – Natural Resources – Natural
CapitalCapitalIB syllabus: 3.2.1-3.2.6IB syllabus: 3.2.1-3.2.6
Empty Oceans Empty NetsEmpty Oceans Empty Nets
Syllabus StatementsSyllabus Statements 4.2.1: Explain the concept of resources in terms of 4.2.1: Explain the concept of resources in terms of
natural capitalnatural capital 4.2.2: Define the terms renewable, replenishable, and 4.2.2: Define the terms renewable, replenishable, and
non-renewable natural capitalnon-renewable natural capital 4.2.3: Distinguish between natural capital and natural 4.2.3: Distinguish between natural capital and natural
incomeincome 4.2.4: Explain the concept of sustainability in terms 4.2.4: Explain the concept of sustainability in terms
of natural capital and natural incomeof natural capital and natural income 4.2.5: Calculate and explain sustainable yields from 4.2.5: Calculate and explain sustainable yields from
given datagiven data 4.2.6: Identify various values associated with natural 4.2.6: Identify various values associated with natural
capital and evaluate how these values influence this capital and evaluate how these values influence this capital’s appraisal and usecapital’s appraisal and use
vocabularyvocabulary
GNP (Gross national product)GNP (Gross national product) Natural CapitalNatural Capital Non renewable natural capitalNon renewable natural capital Renewable natural capitalRenewable natural capital Replinishable natural capitalReplinishable natural capital
It was thus becoming apparent that nature must, in the It was thus becoming apparent that nature must, in the not far distant future, institute bankruptcy not far distant future, institute bankruptcy proceedings against industrial civilization, and proceedings against industrial civilization, and perhaps against the standing crop of human flesh, just perhaps against the standing crop of human flesh, just as nature had done many times to other detritus-as nature had done many times to other detritus-consuming species following their exuberant consuming species following their exuberant expansion in response to the savings deposits their expansion in response to the savings deposits their ecosystems had accumulated before they got the ecosystems had accumulated before they got the opportunity to begin the drawdown... Having become opportunity to begin the drawdown... Having become a species of superdetritovores, mankind was destined a species of superdetritovores, mankind was destined not merely for succession, but for crash.not merely for succession, but for crash.— Catton,OVERSHOOT— Catton,OVERSHOOT
Economic viewEconomic view
Traditional economy based on land, labor and capitalTraditional economy based on land, labor and capital See environment as only one set of resources within a See environment as only one set of resources within a
larger economic spherelarger economic sphere Environmental economists view environment as Environmental economists view environment as
providing goods and services on which humans dependproviding goods and services on which humans depend Economy is constrained by limits of environmental Economy is constrained by limits of environmental
resourcesresources Environment provides raw materials and means of Environment provides raw materials and means of
absorbing wastesabsorbing wastes
Economic production is the process of Economic production is the process of converting the natural world into a converting the natural world into a
manufactured world.manufactured world. Example: trees to paper to trashExample: trees to paper to trash
Resources & Natural CapitalResources & Natural Capital
Term coined by ecologically minded economistsTerm coined by ecologically minded economists If properly managed renewable & replenishable resources If properly managed renewable & replenishable resources
are forms of wealth that can produce “natural income”are forms of wealth that can produce “natural income”
““natural incomenatural income” = indefinitely available valuable goods ” = indefinitely available valuable goods and services (based off of renewable and replenishable)and services (based off of renewable and replenishable) Marketable commodities or Marketable commodities or goodsgoods (timber, grain) (timber, grain) Ecological / Life-support Ecological / Life-support servicesservices (flood & erosion protection (flood & erosion protection
from forests)from forests) Non-renewable resources = forms of economic capital Non-renewable resources = forms of economic capital
that cannot generate wealth without being liquidatedthat cannot generate wealth without being liquidated
Natural Capital & Natural IncomeNatural Capital & Natural Income
Natural Capital Natural Capital Standing stocks Standing stocks Stock = present accumulated amount of capitalStock = present accumulated amount of capital Forests, FishForests, Fish
Natural Income Natural Income Flows Flows Sustainable rate of harvest of a stockSustainable rate of harvest of a stock Harvests of timber, fishingHarvests of timber, fishing
Too many boats, too few fishToo many boats, too few fish November 1994 moves to shut down north atlantic November 1994 moves to shut down north atlantic
groundfish fisherygroundfish fishery Public outcry and economic effectsPublic outcry and economic effects What caused the collapseWhat caused the collapse Decades of unsustainable harvestDecades of unsustainable harvest Magnuson Act of 1976 supported unprecedented growth Magnuson Act of 1976 supported unprecedented growth
of the fishing fleetof the fishing fleet 570 boats to 900570 boats to 900 Bigger boats with more technology to catch fishBigger boats with more technology to catch fish Removing large breeders and young before they can Removing large breeders and young before they can
breedbreed Common syndrome for fisheries collapseCommon syndrome for fisheries collapse The flow (harvest) was bigger than the stock (population) The flow (harvest) was bigger than the stock (population)
could supportcould support
Classes of Natural Capital IClasses of Natural Capital I RENEWABLE NATURAL RENEWABLE NATURAL
CAPITALCAPITAL Living species, ecosystemsLiving species, ecosystems Self producing & self Self producing & self
maintainingmaintaining May use solar energy in May use solar energy in
photosynthesisphotosynthesis Can yield marketable goods Can yield marketable goods
(wood, meat) (wood, meat) Essential services when left in Essential services when left in
place (climate regulation)place (climate regulation)
Classes of Natural Capital IIClasses of Natural Capital II
REPLENISHABLE REPLENISHABLE NATURAL CAPITALNATURAL CAPITAL
Non-living & dependent Non-living & dependent on solar engine for on solar engine for renewalrenewal
Groundwater, Ozone Groundwater, Ozone layerlayer
Classes of Natural Capital IIIClasses of Natural Capital III
NON-RENEWABLE NON-RENEWABLE NATURAL CAPITALNATURAL CAPITAL
Like inventoriesLike inventories Any use requires Any use requires
liquidating part of the liquidating part of the stockstock
Fossil fuels, Metals, & Fossil fuels, Metals, & MineralsMinerals
Some may regenerate in Some may regenerate in a geological time scalea geological time scale
The status of these resources The status of these resources changes over timechanges over time
Cultural, economic, and technological factors Cultural, economic, and technological factors influence a resource’s status over time and spaceinfluence a resource’s status over time and space
Uranium – never valued, but with advent of nuclear Uranium – never valued, but with advent of nuclear technologies now extremely valuabletechnologies now extremely valuable
Bluefin Tuna – prior to 1970 exclusively sport fish Bluefin Tuna – prior to 1970 exclusively sport fish (.05 / lb) (.05 / lb) Japanese specialty market develops –now Japanese specialty market develops –now a single large fish has sold for $180,000a single large fish has sold for $180,000
Solar Power – 1960s space race makes it important Solar Power – 1960s space race makes it important 1970s oil embargo makes it critical 1970s oil embargo makes it critical 1990s 1990s competes with dropping oil prices competes with dropping oil prices now peak oil now peak oil and increasing price make it desirable againand increasing price make it desirable again
Natural Capital has ValueNatural Capital has Value
Ecological, Economic, Aesthetic valueEcological, Economic, Aesthetic value Value assigned based on diverse perspectivesValue assigned based on diverse perspectives
Industrial Societies emphasize monetary & Industrial Societies emphasize monetary & economic valuations of natureeconomic valuations of nature
Economic value determined by market price of Economic value determined by market price of goods or services producedgoods or services produced
Extrinsic ValuesExtrinsic Values
Natural Capital has Intrinsic ValueNatural Capital has Intrinsic Value
Ecological processes have no formal valueEcological processes have no formal value Still important though Still important though waste elimination, waste elimination,
flood & erosion control, nitrogen fixation, flood & erosion control, nitrogen fixation, photosynthesisphotosynthesis
Essential for existence but taken for grantedEssential for existence but taken for granted
Natural Capital has Intrinsic ValueNatural Capital has Intrinsic Value
Organisms & Ecosystems valued for aesthetic or Organisms & Ecosystems valued for aesthetic or intrinsic reasons may not produce commodities intrinsic reasons may not produce commodities identifiable as goods or servicesidentifiable as goods or services
Unpriced & undervalued from economic Unpriced & undervalued from economic standpointstandpoint
Value from spiritual, ethical, or philosophical Value from spiritual, ethical, or philosophical perspectiveperspective
So diverse perspectives needed to evaluate natural So diverse perspectives needed to evaluate natural capitalcapital
Value vs. SustainabilityValue vs. Sustainability
Hard to compare the values without pricesHard to compare the values without prices Attempts being made to acknowledge the Attempts being made to acknowledge the
diverse values so they are weighed more diverse values so they are weighed more rigorously against traditional values (GNP, rigorously against traditional values (GNP, etc.)etc.)
Is this kind of valuation possible?Is this kind of valuation possible? Sustainability debate hinges around the Sustainability debate hinges around the
problem of how to weigh conflicting values of problem of how to weigh conflicting values of natural capitalnatural capital
Wealth of NationsWealth of Nations
Determined by 3 componentsDetermined by 3 components Produced assets, Natural Capital, Human Produced assets, Natural Capital, Human
resourcesresources Complement each other and contribute to well Complement each other and contribute to well
beingbeing Dominant source of national wealth may vary Dominant source of national wealth may vary
between the 3 componentsbetween the 3 components
Wealth of NationsWealth of Nations
Often represented by GNP (Gross national Often represented by GNP (Gross national product)product) sum of goods and services sum of goods and services produced in a countryproduced in a country
Shows economic health and wealthShows economic health and wealth GDP = GNP – net income from abroad GDP = GNP – net income from abroad Often used to compare rich and poor countriesOften used to compare rich and poor countries Depreciation in materials accounted forDepreciation in materials accounted for Depreciation of natural capital never taken into Depreciation of natural capital never taken into
accountaccount This is a problemThis is a problem
ExampleExample If a country cuts down 1 If a country cuts down 1
million acres of forestmillion acres of forest We see positive on We see positive on
income side from timber income side from timber salessales
Only depreciation Only depreciation accounted is in chain saws accounted is in chain saws and trucksand trucks
What about the loss of What about the loss of natural servicesnatural services
Situations like this lead to Situations like this lead to undervaluing natural undervaluing natural resourcesresources
SustainabilitySustainability
Living within the means of nature, on the interest or Living within the means of nature, on the interest or sustainable income generated by natural capitalsustainable income generated by natural capital
Societies supporting themselves by depleting Societies supporting themselves by depleting essential forms of natural capital is unsustainableessential forms of natural capital is unsustainable
If well being dependent on certain goods or services If well being dependent on certain goods or services must harvest with caremust harvest with care
Specifically long term harvest or degradation should Specifically long term harvest or degradation should not exceed rates of capital renewalnot exceed rates of capital renewal
Sustainable DevelopmentSustainable Development
Term first used in 1987 in Term first used in 1987 in Our Common FutureOur Common Future Development that meets current needs without Development that meets current needs without
compromising the ability of future generations to compromising the ability of future generations to meet their own needsmeet their own needs
Economist view Economist view stable annual return on stable annual return on investment regardless of environmental impactinvestment regardless of environmental impact
Environmentalist view Environmentalist view stable return without stable return without environmental degradationenvironmental degradation
http://www.earthsummit.info/
The Earth Summit (1992) and its The Earth Summit (1992) and its aftermathaftermath
Rio de Janeiro Conference on the Environment and Rio de Janeiro Conference on the Environment and DevelopmentDevelopment
Env. Issues that cross international bordersEnv. Issues that cross international borders Pollution, ocean conditions, atmospheric effects, forest Pollution, ocean conditions, atmospheric effects, forest
destruction, loss of biodiversitydestruction, loss of biodiversity Agenda 21 Agenda 21 focus on sustainable development for the 21 focus on sustainable development for the 21stst
centurycentury Reconcile future economic development with Reconcile future economic development with
environmental protectionenvironmental protection Followed by 2002 world summit on sustainable Followed by 2002 world summit on sustainable
development in Johannesburgdevelopment in Johannesburg
Sustainable YieldSustainable Yield
Sustainable Yield = SYSustainable Yield = SY SY = Rate of increase in natural stockSY = Rate of increase in natural stock Amount to exploit without depleting initial Amount to exploit without depleting initial
stock or potential for replenishmentstock or potential for replenishment SY for a crop = annual gain in biomass or SY for a crop = annual gain in biomass or
energyenergy These gains from growth or recruitment These gains from growth or recruitment
(production of offspring)(production of offspring)
Sample CalculationSample Calculation
An average bluefin tuna produces 10 million An average bluefin tuna produces 10 million eggs per year but only 10 of those survive to eggs per year but only 10 of those survive to adult hood. Out of every 10, 3 will migrate to adult hood. Out of every 10, 3 will migrate to other areas of the ocean. If you start with other areas of the ocean. If you start with 5000 tuna, what is the sustainable yield in your 5000 tuna, what is the sustainable yield in your fishery?fishery?
So what would be a scenario where it would So what would be a scenario where it would be a simple calculation?be a simple calculation?