Natural capital

Definition

Natural capital refers to the world's stocks of natural assets, including geology, soil, air, water, and all living things. It is essential for sustaining life and provides valuable resources and services that contribute to human well-being and economic activity. Understanding natural capital is critical for promoting a green economy and sustainable development, as it emphasizes the importance of conserving ecosystems and utilizing resources responsibly for long-term prosperity.

5 Must Know Facts For Your Next Test

1. Natural capital is often quantified through measurements of ecosystem services, which help illustrate its economic value and importance for human survival.
2. The depletion of natural capital can lead to significant economic costs, including loss of biodiversity, diminished ecosystem services, and increased vulnerability to environmental disasters.
3. Investing in natural capital can yield high returns, as healthy ecosystems provide benefits such as clean air and water, pollination of crops, and carbon sequestration.
4. Policies aimed at protecting natural capital include conservation efforts, sustainable land management practices, and integrating ecological considerations into economic decision-making.
5. The concept of natural capital challenges traditional economic models by highlighting the interdependence between economic growth and the health of our planet.

Review Questions

• How does natural capital contribute to a sustainable economy?
  • Natural capital plays a vital role in creating a sustainable economy by providing essential resources and ecosystem services that support human life and economic activity. By recognizing the value of natural capital, economies can implement practices that ensure responsible resource use, leading to sustainable development. This creates a feedback loop where healthy ecosystems support economic stability while also ensuring that future generations have access to the same resources.
• Evaluate the implications of declining natural capital on global ecosystems and human society.
  • The decline of natural capital can have severe implications for global ecosystems and human society. As natural resources become depleted, ecosystems may collapse, leading to loss of biodiversity and ecosystem services that are critical for food security, clean water supply, and climate regulation. This not only threatens environmental sustainability but also exacerbates social inequalities as vulnerable populations often rely most heavily on these diminishing resources.
• Propose strategies that could be implemented to enhance the preservation and restoration of natural capital in urban environments.
  • To enhance the preservation and restoration of natural capital in urban environments, strategies could include developing green infrastructure like parks and green roofs that promote biodiversity while improving air quality. Implementing policies that encourage sustainable land use and water management can also help maintain healthy ecosystems within cities. Community engagement initiatives focused on education about the value of natural capital can foster collective action toward sustainability. Additionally, integrating ecosystem services into urban planning decisions would ensure that growth does not come at the expense of vital natural assets.

Related terms

Ecosystem Services:

The benefits that humans obtain from ecosystems, including provisioning services like food and water, regulating services such as climate regulation, supporting services like nutrient cycling, and cultural services including recreational benefits.

Sustainable Development:

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, often involving a balance between economic growth, environmental stewardship, and social equity.

Biodiversity: The variety of life in a particular habitat or ecosystem, which contributes to resilience, ecosystem services, and the overall health of the planet.