Similarities between physical capital and natural capital, Public Economics

Similarities between Physical Capital and Natural Capital

There are certain similarities between physical capital and natural capital. First, both physical capital and natural capital are durable in nature in the sense that they do not get exhausted in a single use. Rather they provide certain services (inputs), which depend upon the quantity and quality of capital stock. Second, depreciation to physical capital accelerates if it is over-utilized. Similarly the stock of natural capital is depleted faster in case excessive resources are extracted from the environment.

Environment retains the capacity to regenerate itself in certain aspects and to some extent. If extraction from the environment is within its regeneration capacity, there is no depletion to the stock of natural capital. For example, if harvesting of forest products from forests is less than its regeneration capacity, the quality of forests as well as the area under forests will not be adversely affected, On the other hand, excessive withdrawal of forest resources would result in a decline in supply of forest resources available to the economy in the long run. In a similar manner, depletion in the stock of natural capital in general would adversely affect the flow of environmental services.

 

Posted Date: 12/18/2012 4:32:59 AM | Location : United States







Related Discussions:- Similarities between physical capital and natural capital, Assignment Help, Ask Question on Similarities between physical capital and natural capital, Get Answer, Expert's Help, Similarities between physical capital and natural capital Discussions

Write discussion on Similarities between physical capital and natural capital
Your posts are moderated
Related Questions
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Basic floor plan: There are no security guards on duty at any given time. There are three ATM's on site but none of them can see who comes and goes through the building. Cameras a

Q. Example on Uncertainty and the policy process? For example, if it is expected that current government will be replaced in upcoming election, and the next government will be



classical and modern theories of burden of public debt

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

A dam is proposed on a stretch of wild river, a river that is currently used for recreation. The dam will generate electricity. The dam will have a useful life of 50 years, after w


Question 1: " Public policy gives one a better understanding of what governments do, why they do what they do and what difference public policy makes to the lives and circumst