...of marine protection areas within Australian waters and to analyse its policy from an environmental and economic viewpoint, in order to forward policy recommendations for future consideration. A Background to Environmental Policy The underlying assumption behind environmental policy is that by designing social intervention we can bring about environmental improvement. However, designing a policy that actually produces the changes you seek is extremely difficult. Chiefly, planning and policy attempt to exercise control, to develop a desired future (Thomas 2007, p.7). But control is difficult enough to achieve over people, let alone trying to control the physical environment (Thomas 2007, p.7). Another fundamental issue for policy-makers is the direction of the policy. In particular they have to consider whether they are attempting to prevent environmental impacts that result from human action, or whether they are attempting to adapt to such changes, consciously or unconsciously (Thomas 2007, p.8). Natural Resources Natural resources have been critical for human welfare since people first started to walk the earth several million years ago (Field 2005 p.27). Natural resource economics is the study of how the flow of goods and services derived from natural resources is, and should be, managed in today’s world (Field 2005 p.37). Field continues to state that resource management problems derive from the underlying technological, institutional and cultural factors that characterise...
Words: 3864 - Pages: 16
...Comparing Natural Resources Exports on Economic Performance Introduction People always hear about a county’s Gross Domestic Product (GDP) through reading newspaper articles, watching the media interview distinguished economists, or hearing the President address the nation on television. But what exactly does the GDP of a country measure and how can it be increased? The Gross Domestic Product is the primary indicator of the health of a country’s economy. Representing the total dollar value of all goods and services produced in a country during a given time, it is a way to define a country and is a standard to measuring the world’s economies. A country with a high GDP is said to be a well established, and most likely a developed, nation as their value of goods and services exceed the average markets worldwide. As one can imagine, economic production and growth has a large impact on nearly everyone within that economy. One approach to calculating GDP is to add up all of the income generated by employees, profits for companies, and taxes. Oil production and trade is a large part of the equation in that energy independence or dependence affects a country’s overall economic plan and trade deficit. To be a nation that exports oil means to have a certain level of independence and a way to generate revenue for the country. This study focuses on the effect of natural resources exports, in this case oil, on economic performance for the Middle East and North African countries. The...
Words: 1073 - Pages: 5
...Explain the difference between Neoclassical Environmental Economics, Ecological Economics, and Natural Resource Economics. The three approaches originate from three different schools of thought. Broadly, Neoclassical Environmental Economics (NEE) is the opposite of the Ecological Economics (EE), and Natural Resource Economics (NRE) lies somewhere between them. Let’s begin with the opposing views. Field states, ‘Environmental Economics is the application of the principles of economics to the study of how environmental resources are managed. (Field & Field 2013:2). In gist, NEE is an Anthropospheric view of the environment through micro and macro-economic principles and sociopolitical influences that ignores the other spheres of life. The environment, is a subsystem of economics and has no intrinsic value. It is merely a factor of production, and only manufactured goods/services have an intrinsic value. EE, on the other hand, is a holistic approach, broader in scope, concerned with the supply and demand of energy and matter within the biosphere, hydrosphere, lithosphere and atmosphere - where contrastingly, the Anthroposphere is the subsystem. EE claims that NEE is totally dependent on the environment and that residuals and pollution are disruptive to natural processes and diminishes the earth’s bio-capacity. Environmental Economics’ primary focus is to manage the environment to supply services and goods in exchange for money (MO 2015 quoting Tietenberg 2014:7) whereas...
Words: 3226 - Pages: 13
...Factors of Economic Change Name Institution Introduction Economic change is the variation in the capacity and capability of a country’s economy to produce goods and provide services within a given time frame. This essay analyses how supply and utilization of natural resources, capital formation, technological development, human resources, and foreign aid and investment lead to economic change. Supply and Utilization of Natural Resources The quantity and quality of natural resources in an economy have a significant role in initiating economic change (Knox, Agnew, & McCarthy, 2014). Maximum utilization of these resources determines the degree of economic change in a country. For instance, India with its excess availability of natural resources has had little economic development. On the other hand, Japan, which has little resources, has undergone rapid economic change to be among best-developed countries in the world. Through international trade, Japan imports most of the natural resources to help in the manufacture of its goods, which it exports to reap the benefits. Capital Formation The combination of labor with capital is vital in transforming the economic status of countries. For instance, the United States of America is productive because of the use of capital goods like machines, industries, and good infrastructure as compared to most developing countries which are less equipped. ...
Words: 500 - Pages: 2
...Ahmed Kamruzzaman Majumder THE concept that every nation might acknowledge the economic role of the environment in its income accounts is neither a hasty shift nor a quick practice; it has been under discussion globally since the 1960s. Unfortunately in Bangladesh the contribution of the environmental goods and services in the national economy has been ignored for a long time. In the changing circumstances of global climate it is high time that we wake up and recognize the contribution of the environment to sustain our economy. For a long time, conventional indicators like Gross Domestic Product (GDP), Gross National Product (GNP) and Net Domestic Product (NDP) were used around the world to construct national accounts and as a measure of the economic progress of a country and standard of living. However, these traditional measures of economic activity failed to be responsive because of the fact that economy cannot operate without the support of the natural environment. National accounts allow depreciation allowance for manufactured assets, while the contributions of environmental assets to economy are not valued and hence no depreciation allowance is made for these assets. Thus, in Bangladesh, omission of the degradation and depletion of the country's natural capital will lead to over estimation of the national income figures. Why we will change Governments all over the world develop economic data systems familiar as System of National Accounts (SNA) to calculate macroeconomic...
Words: 1663 - Pages: 7
...protection With the rapid development of the society, the rate of economic growth is becoming an increasingly important part for people to judge the government nowadays. Therefore, some governments in the world decided to ignore environmental concerns in order to increase economic growth. So human activities have caused great destruction to the earth in many ways. First of all, many nations, especially the developing nations including China and India, have been confronted with pollutions brought by the excessive exploitation, which has threatened. Admittedly, no one can deny that depending on natural resources is one of the fastest ways for a country to increase economic growth. Natural resources such as trees and fossil fuels hardly exist in many countries in the world, so these countries have to import natural resources from other countries. Many countries in the world do not have large quantities of natural resources, such as fossil fuels and water resources to support the industrial and economic development. This imbalanced situation has brought huge profits to nations with profound natural resources. For instance, China, as a nation with a variety of natural resources, has highly relied on the exploitation of natural resources and resource exportation to increase its economy in the past thirty years. This policy has led to the constant development of China’s GDP in the last 20 years and made it become an economic wonder worldwide. Nevertheless, it turns out to the huge destruction...
Words: 594 - Pages: 3
...1. Economics is the study of how people choose to use resources. Resources include the time and talent people have available, the land, buildings, equipment, and other tools on hand, and the knowledge of how to combine them to create useful products and services. 2. Needs are limited. These include food, liquid, heat, shelter, clothing (material needs), self-esteem and being loved (psychological and emotional needs). Whereas Wants are unlimited. Be it a farmer in Africa, a manager in the UK or the richest individual in the world. There is always something which he or she wants more of. 3. Land is the economic resource encompassing natural resources found within an economy. This resource includes timber, land, fisheries, farms and other similar natural resources. Land is usually a limited resource for many economies. Although some natural resources, such as timber, food and animals, are renewable, the physical land is usually a fixed resource. Nations must carefully use their land resource by creating a mix of natural and industrial uses. Labor represents the human capital available to transform raw or national resources into consumer goods. Human capital includes all able-bodied individuals capable of working in the economy and providing various services to other individuals or businesses. This factor of production is a flexible resource as workers can be allocated to different areas of the economy for producing consumer goods or services. Human capital can also be improved...
Words: 439 - Pages: 2
...Chapter 1 notes: * Economics: a social science that examines how people choose among the alternatives available to them. * Scarcity: the condition of having to choose among alternatives * Scarce good: a good for which the choice of one alternative requires that another be given up * Free good: a good for which the choice of one use does not require that another be given up * Important questions: * What should be produced * How should goods and services be produced * For whom should goods and serviced be produced * Opportunity cost: the value of the best alternative forgone in making any choice * Economists study choices that scarcity requires us to make * Economic approach to choice: * Economists give special emphasis to role of opportunity costs * Assume that individuals makes choices that maximize the value of some objective and they define their objectives based on self-interests * Individuals maximize by choosing to do little more or little less of something; argue that individuals pay attention to the consequences of small changes in the levels of activities they purchase * Economic way of thinking pushes us to the value of alternatives in each choice we make * Margin: current level of activity * Choice at the margin: decision to do a little more or little less of something * Microeconomics: branch of economics that focuses on the choices made by individual decision-making units in the economy and the...
Words: 1239 - Pages: 5
...Is it true that Good Institutions Alleviate the Resource Curse? A Reassessment of Existing OLS Cross Country Evidence Malebogo Bakwena* Abstract The paper tests the hypothesis that the effect of resources on growth is conditional on the quality of institutions, by further building on Mehlum, Moene, and Torvik’s (2006b) influential work. Advances are made by re-testing the hypothesis, using: (a) a dataset of up to 53 countries over the period 1984-2003; and (b) a resource abundance indicator that focuses on non-renewable resources alone rather than the ones commonly used in the literature that include renewable resources, which are inappropriate. The empirical results of the paper confirm the hypothesis that resource rich economies are not destined to be cursed if they have good institutions. Keywords: World economic growth, resource curse, institutions * Senior Lecturer at the University of Botswana, Department of Economics, Private Bag 0022 Gaborone, Botswana. E-mail: thokweng@mopipi.ub.bw, Telephone: (+267) 3552151, Fax: (+267)3972936. 1 1. Introduction Contrary to conventional theory, a growing body of evidence suggests that economies with abundant natural resources perform badly in terms of economic growth relative to their resource poor counterparts—the so-called resource curse hypothesis. However, this general hypothesis is not robust. It clearly fails to account for the differing experiences of resource abundant economies. For instance, the theory, applied...
Words: 7701 - Pages: 31
...and Eastern Europe Natural environmental concerns have been felt since the late nineteenth century, when it was the attitude of admiration transition from passive to active natural beauty drive to protect them and prevent the abuse of natural resources . The central axis of our environmental policy is to ensure a clean environment for the health of its inhabitants , breaking the vicious circle of poverty and environmental degradation , ensuring innovative regenerative growth for the benefit of present and future generations , harmonization of legislation with the specific environmental European Union to accelerate integration into European structures. Without environmental protection , can not ensure sustainable development. Sustainable development includes environmental protection and sustainable development environmental conditions.Requirements and existing requirements at EU level requires a new approach to global environmental problems , in terms of effects and pressure on the environment and all socio -economic consequences . United Nations Conference on Environment and Development (UNCED ) held in Rio de Janeiro in June 1992 , showed that they can not think of environment and economic and social development as isolated areas and that the only path to long-term economic progress it is binding environmental protection . The key issue of sustainable development is the reconciliation between two human aspirations : need for further economic and social development ...
Words: 910 - Pages: 4
...environmental problems. 1. The biosphere is the natural world: plants, animals, soils, air, and water. 2. The culturesphere is defined by technological, economic, cultural, and political aspects of our world. A. Environment considers everything that affects a living organism. B. Ecology studies relationships between living organisms and their environment. C. Environmentalism is a social movement dedicated to protecting life support systems for all species. D. Life and economies depend on solar capital (energy from the sun) and natural capital (Earth’s resources and ecological services). 1. Capital is wealth; solar capital/energy creates renewable energy such as wind power, hydropower from flowing water, and biomass that is solar energy that has been changed to chemical energy and stored, in a biological form, such as wood. 2. Natural capital includes natural resources such as air, water, soil, wildlife, minerals, etc. and ecological services. a. Biological income from fish, grasslands, and underground water can be sustained, IF we don’t deplete it. b. Man, as a newcomer species, is endangering quality of life for us and other species. F. Man must protect our solar and natural capital and live off the resources they provide. 1. For an environmentally sustainable society we must not compromise the needs of future generations. 2. One view is that man must live sustainably by eliminating waste and discontinuing the depletion and degradation of resources. 3. A different view is that man can overcome...
Words: 1804 - Pages: 8
...capture value economic, social, or other forms of value. The Business Model is part of the Business Strategy. To create a successful business model, managers must choose business level strategies, that will give the company a competitive advantage over its rivals. They must decide customer needs, customer groups, and distinctive competencies. Organizations use business models to develop business strategies and earn profits from business operation. Business owners or executive managers may be responsible for creating these business models, and a company’s productivity will be affected by the environment where the business operates. Changes in economic factors can either help or hurt any business chance of success. Any increase in the availability of workers, may allow companies to more hiring, this will help or increase the production output, which can dramatically change a business model. Also, a decrease in the availability of labor may debility companies’ ability to produce goods or services efficiently and effective. Also physical resources allow companies to produce as many goods as possible. When resources begin to diminish, companies may face high production costs for production. Companies with successful business model need to continuously develop and improve their business level strategies to sustain their competitive advantage overtime as the industry environment changes. Companies often employ business analysts to study the strength of natural environment...
Words: 442 - Pages: 2
...Farrington 2 1 2 Agricultural Economics Research Institute, Wageningen University, P.O. Box 29703, 2502LS The Hague, The Netherlands Institute for Rural Research, Geography and Environment, University of Aberdeen, Elphinstone Road, Aberdeen AB24 3UF, Scotland, UK; E-Mail: j.farrington@abdn.ac.uk * Author to whom correspondence should be addressed; E-Mail: tom.kuhlman@wur.nl; Tel.: +31-70-3358-232; Fax: +31-70-3615-624. Received: 17 September 2010; in revised form: 15 October 2010 / Accepted: 19 October 2010 / Published: 1 November 2010 Abstract: Sustainability as a policy concept has its origin in the Brundtland Report of 1987. That document was concerned with the tension between the aspirations of mankind towards a better life on the one hand and the limitations imposed by nature on the other hand. In the course of time, the concept has been re-interpreted as encompassing three dimensions, namely social, economic and environmental. The paper argues that this change in meaning (a) obscures the real contradiction between the aims of welfare for all and environmental conservation; (b) risks diminishing the importance of the environmental dimension; and (c) separates social from economic aspects, which in reality are one and the same. It is proposed instead to return to the original meaning, where sustainability is concerned with the well-being of future generations and in particular with irreplaceable natural resources—as opposed to the gratification of...
Words: 6817 - Pages: 28
...BIO 3108 – NATURAL RESOURCES AND POPULATION GROWTH CONSERVATION AND MANAGEMENT What are natural resources? A natural resource is defined as a form of energy and/or matter which is essential for the functioning of organisms, populations and ecosystems. In the case of humans, a natural resource refers to any form of energy or matter essential for the fulfillment of physiological, socio-economic and cultural needs, both at the individual level and that of the community. Life on our planet earth depends upon a large number of things and services provided by the nature, which are known as natural resources. Water, air, soil, minerals, coal, forests, crops and wild life are all the examples of natural resources. The basic ecological variables- energy, space, time and diversity are sometimes combined called natural resources. These natural are maintaining ecological balance among themselves. Man is the only organisms who have disrupted this duplicate balance. A natural resource is a form of energy and/or matter, which is essential for the functioning of organisms, populations and ecosystems. In the case of humans, a natural resource refers to any form of energy or matter essential for the fulfillment of physiological, socio-economic and cultural needs, both at the individual level and that of the community. The basic ecological variables- energy, space, time and diversity are sometimes combined called natural resources. These natural resources are maintaining ecological...
Words: 3126 - Pages: 13
... * Identify the marketing trends in the firm’s natural resources and technological environments. * Explain the key changes that occur in the political and cultural environments. * Discuss how companies can react to the marketing environment. ------------------------------------------------- Natural Environment –involves natural resources that are needed as inputs or that are affected by marketing activities. Natural resource economics focuses on the supply, demand, and allocation of the Earth’s natural resources. Its goal is to gain a better understanding of the role of natural resources in the economy. Learning about the role of natural resources allows for the development of more sustainable methods to manage resources and make sure that they are maintained for future generations. The goal of natural resources economics is to develop an efficient economy that is sustainable in the long run. Importance of Environment This diagram illustrates how society and the economy are subsets of the environment. It is not possible for society and economics systems to exist independently from the environment. For this reason, natural resources economics focuses on understanding the role of natural resources in the economy in order to develop a sufficient and sustainability economy that protects natural resources. Types of Natural Resources Natural resources are derived from the environment. Some of the resources are essentials to survival, while others merely satisfy...
Words: 1165 - Pages: 5