Human Populations:Human Populations:Resources – Natural Resources – Natural

CapitalCapitalIB syllabus: 4.2.1-4.2.6IB syllabus: 4.2.1-4.2.6

Empty Oceans Empty NetsEmpty Oceans Empty NetsAP syllabusAP syllabus

Ch 12Ch 12

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 Activity: Classic ViewEconomic Activity: Classic View

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

Economic Activity: Environmental ViewEconomic Activity: Environmental View

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

New England Groundfish Fisheries New England Groundfish Fisheries ExampleExample

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

Ecosystem Capital: Goods and ServicesEcosystem Capital: Goods and Services

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

How Society’s Assets Complement How Society’s Assets Complement Each OtherEach Other

Composition of World WealthComposition of World Wealth

Wealth of NationsWealth of Nations Often represented by GNP (Gross national Often represented by GNP (Gross national

product)product) sum of goods and services produced sum of goods and services produced in a countryin 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/

http://www.binishells.com/index.htmlhttp://www.binishells.com/index.html

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)

Calculating sustainable YieldCalculating sustainable Yield

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?