Tuesday, April 15, 2014

Provision of Income From Natural Resources- Natural Capital

Provision of Income: It means the source or gain of income or money from somewhere.

Income: money received, especially on a regular basis, for work or through investments.

Natural Resource:
 Materials or substances occurring in nature which can be exploited for economic gain.

Concept of resources in terms of natural income:
Ecologically minded economists describe resources as “natural capital”. If properly managed, renewable and replenish able resources are forms of wealth that can produce “natural income” indefinitely in the form of valuable goods and services. This income may consist of marketable commodities such as timber and grain (goods) or may be in the form of ecological services such as the flood and erosion protection provided by forests (services).

Natural Capital and Income
The concept of natural capital refers to the source or supply of resources and services that are derived from nature. Forests, mineral deposits, fisheries and fertile soil are some examples of natural capital. Air and water purification are just two of many services.
Natural Income is the annual yield from such sources of natural capital - timber, ores, fish and plants, respectively, relative to the examples above. The point, at which the amount of natural income used up reduces the capacity of natural capital to continue providing the same amount of natural income in the future, is the point at which sustainable scale has been exceeded.

Natural Income: More than Resources
Natural resources are not the only type of natural income which flow from ecosystems. A variety of ecosystem functions are also provided.

        i.            Forests, for example, are not simply wood production units. They also prevent soil erosion, absorb rain water and provide flood control, they provide habitat for a diversity of plant and animal species which may serve as foods or medicines for other species, they absorb the natural wastes of these diverse life forms, they generate oxygen and sequester carbon from the atmosphere, they affect the microclimate of their area, they are a key component of the hydrologic cycle, as well as providing aesthetic enjoyment and spiritual inspiration. These forest ecosystem functions evolved to maintain the overall health of the forest environment and the creatures in it. Ecosystem functions are another form of natural income derived from the same natural capital of the forest ecosystem that generates timber for economic use.

      ii.            mineral deposits
Mineral resources are those economic mineral concentrations that have undergone enough Scrutiny to quantify their contained metal in them.
Mineral deposits are used to increase income by exporting them thus a source of foreign exchange
    iii.            fisheries
Fisheries are also source of income in many costal countries of world including Pakistan. Through fisheries we can generate income and economy of country may be improved by giving jobs to poor people. Directly or indirectly, the livelihood of over 500 million people in developing countries depends on fisheries and aquaculture.

    iv.             fertile soil
Fertile soil is one of the important natural resource, it provide services due to which we are alive. For example harvesting crops whole year, provides enough cash to farmer and countries economy and income.
      v.            Ores
Ores increases the country’s economy to high level. Ores are used to extract the minerals like iron copper, zinc, salt, and many more. Which after are used to produce different products for common use purposes or for military (tanks, amino and guns).some other items are Arrows , Axe , Buckets ,Chisel , Firestarter ,Flint&Steel , Hammer ,Hoe , Javelin , Knife , Mace , Pickaxe , Prospector's Pick , Saw , Shovel , Sword , Scythe ,Shears , Spindle
    vi.            Fresh water
Fresh water is naturally occurring water on the Earth's surface in ice sheets, ice caps, glaciers, icebergs, bogs, ponds, lakes, rivers and streams, and underground as groundwater in aquifers and underground streams. An important concern for hydrological ecosystems is securing minimum stream flow, especially preserving and restoring in stream water allocations. Fresh water is an important natural resource necessary for the survival of all ecosystems. The use of water by humans for activities such as irrigation and industrial applications can have adverse impacts on down-stream ecosystems
  vii.            Genetic Resource
Species, subspecies, or genetic varieties of plants, animals, and microorganisms that currently provide important goods and services or may be capable of providing them at some time in the future.
These techniques can be used and are reason of provision of income.

viii.            Dietary fiber
Dietary fiber, or sometimes roughage and ruffage is the indigestible portion of food derived from plants and waste of animals that eat dietary fiber. Dietary fiber is found in plants. While all plants contain some fiber, plants with high fiber concentrations are generally the most practical source. Fiber-rich plants can be eaten directly. Or, alternatively, they can be used to make supplements and fiber-rich processed foods. Fibers are often used in the manufacture of other materials. The strongest engineering materials are generally made as fibers, for example carbon fiber and Ultra-high-molecular-weight polyethylene. Synthetic fibers can often be produced very cheaply and in large amounts compared to natural fibers, but for clothing natural fibers can give some benefits, such as comfort, over their synthetic counterparts.

Services from Natural Capital or Resources
Natural resources are not the only type of natural income which flow from ecosystems. A variety of ecosystem functions are also provided.
There are four general services provided by natural capital, each of which need to be considered from the perspective of criticality:

        i.            Provisioning Services – which provide resources used in production (timber, fish, etc.)

      ii.            Regulating Services – which regulate ecosystem processes, such as decomposition organic wastes, cleansing of the air (by oxidation, etc.

    iii.            Cultural Services -providing benefits of a spiritual, aesthetic, recreational or psychological nature; giving meaning to place, etc

    iv.            Supporting Services - which regulate processes necessary for all the other ecosystem services

The Competition for Natural Capital or Resource
The exchanges of energy and nutrients among the planet’s biotic and abiotic components created the earth's unique capacities to support complex life forms. Our planet's web of life depends on solar energy and exchanges of natural capital in life sustaining processes. As the human species evolved, spread around the globe, and began increasing the level of material throughput via technology, it began competiting with other species and natural processes for the available, and finite, amounts of natural capital available. The success of this human activity is leading us to out-compete the natural world upon which we depend. Thinking about sustainable scale helps us think about the appropriate balance between the human use of natural capital, and the rest of nature’s use of the limited amount available.

Conclusion:

We can conclude that natural resources are important components in any counties economy and ecosystem. Disturbance in it can cause fluctuation in earth environment and income of country or individual.

0 comments:

Post a Comment