Natural capital

Definition

Natural capital refers to the world's stocks of natural assets, including geology, soil, air, water, and all living things. These resources provide ecosystem services that are essential for human survival and well-being, such as clean air and water, pollination of crops, and climate regulation. The concept emphasizes the importance of nature as a vital component of economic and social systems, highlighting that the health of ecosystems directly affects the services they provide.

5 Must Know Facts For Your Next Test

1. Natural capital is critical for maintaining ecosystem services that support human life and economic activity.
2. Depletion or degradation of natural capital can lead to severe consequences, including loss of biodiversity and disruption of ecosystem functions.
3. Investment in natural capital can lead to improved economic outcomes, as healthy ecosystems often result in higher productivity and resilience.
4. Measuring natural capital can help guide sustainable resource management practices and inform policy decisions.
5. Restoring natural capital through conservation efforts can enhance ecosystem services and improve overall environmental health.

Review Questions

• How does natural capital contribute to the provision of ecosystem services?
  • Natural capital plays a crucial role in providing ecosystem services by maintaining the health and functionality of ecosystems. These services include clean air and water, nutrient cycling, pollination of crops, and climate regulation. By protecting natural capital, we ensure that these vital ecosystem services continue to benefit human societies and economies.
• Discuss the relationship between biodiversity and natural capital in terms of ecosystem resilience.
  • Biodiversity is an integral component of natural capital that enhances the resilience and stability of ecosystems. A diverse range of species can better withstand environmental changes and disturbances, thereby maintaining essential ecosystem functions. This relationship underscores the importance of conserving biodiversity as a means to protect and sustain natural capital.
• Evaluate the implications of natural capital depletion on future economic stability and environmental health.
  • The depletion of natural capital can have dire implications for future economic stability and environmental health. As ecosystems are degraded or destroyed, the services they provide become compromised, leading to potential shortages of essential resources like clean water and food. This not only threatens human well-being but also destabilizes economies that rely on these natural resources, creating a cycle of decline that jeopardizes both environmental integrity and economic viability.

Related terms

ecosystem services:

The benefits that humans derive from ecosystems, including provisioning, regulating, cultural, and supporting services.

biodiversity: The variety of life in a particular habitat or ecosystem, which contributes to the resilience and functionality of natural capital.

sustainability: The ability to maintain ecological balance by using resources in a way that meets current needs without compromising future generations' ability to meet theirs.