The Value of Natural Capital (HL IB ESS OLD COURSE - IGNORE)
Revision Note
Written by: Alistair Marjot
Reviewed by: Bridgette Barrett
The Value of Natural Capital
Natural capital provides natural income in the form of goods (tangible products such as timber and crops) and services
These goods and services have great value to human societies
This value may be aesthetic, cultural, economic, environmental, health, intrinsic, social, spiritual, or technological
Natural Capital Value Types
Value type | Description | Example |
|---|---|---|
Aesthetic | Value from the beauty, visual appeal and enjoyment of natural landscapes and biodiversity | Appreciating a stunning sunset over a pristine beach Enjoying the vibrant colours of a diverse coral reef |
Cultural | Value in shaping cultural practices, traditions and identities of communities | Indigenous communities relying on forests for their livelihoods and incorporating traditional ecological knowledge in their practices |
Economic | Contribution to economic activities through provision of raw materials, fuels, food and other tangible products | Logging industry relying on forests for timber production Agriculture relying on fertile soils for crop cultivation |
Environmental | Provision of essential ecosystem services that support the health and functioning of ecosystems | Wetlands purifying water by filtering pollutants Forests sequestering carbon dioxide and mitigating climate change |
Health | Supporting physical and mental health through clean air, water and natural spaces | Access to clean air and water and green spaces for exercise and relaxation contributes to overall health and well-being |
Intrinsic | Inherent worth of natural capital, independent of its instrumental value to humans | Appreciating untouched wilderness as an essential and irreplaceable part of our planet |
Social | Contribution to human well-being, including recreational spaces, opportunities for maintaining physical and mental health and fostering social cohesion | Parks, woodlands and beaches can provide spaces for people to connect with nature and strengthen social bonds |
Spiritual | Spiritual significance and connection to nature, essential to some communities | Sacred mountains revered for their spiritual significance Other natural places where people seek solace, reflection and spiritual experiences |
Technological | Inspiration and utilisation of natural capital in technological advancements and innovations | Biomimicry, e.g. where the design of a building is inspired by the cooling properties of termite mounds, leading to energy-efficient architecture |
This diverse range of values associated with natural capital highlights the importance of preserving and sustainably managing these resources
This is for the benefit of both present and future generations
The dynamic nature of natural capital
The concept of natural capital is highly dynamic
This is because the value of natural capital can change regionally and over time
Cultural factors can influence the value of certain natural resources
E.g. cork forests in Portugal have been recognised as valuable natural capital due to their importance in the wine industry
The cultural heritage associated with this is significant
Social factors can influence value of natural capital
E.g. in certain regions, uranium mining is seen as a threat to human health and the environment
As a result, uranium may be regarded as negative or harmful natural capital
Economic factors play a significant role in determining the market value of natural capital
E.g. lithium, which is essential for battery production in the rapidly growing electric vehicle industry, has seen increased market value and demand
Environmental factors, such as the physical scarcity or abundance of a resource, can influence its value
E.g. in areas with significant lithium deposits, such as the lithium triangle in South America, lithium has become highly valuable natural capital due to its critical role in batteries
Initially valued for industrial use, coal is now facing scrutiny due to environmental impacts
Technological factors, such as advancements in technology, can influence the value of natural capital
For example, flint was once an important resource used for hand tools
It is now redundant, as it was replaced by the development of metal extraction from ores
Political factors, including regulations and policies, can change the market value of natural capital
Governments can impose restrictions or incentives that affect the extraction and use of certain resources, e.g. limiting uranium mining due to environmental concerns
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