The Value of Natural Capital (HL IB ESS OLD COURSE - IGNORE)

Revision Note

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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