ECON 330 Economic Growth and Scarcity of Natural Resources

ECON 330 Economic Growth and Scarcity of Natural Resources

ECON 330 Economic Growth and Scarcity of Natural Resources

Robert Solow’s economic argument on the interchanging values of natural capital and physical capital fails to account for the unique value that natural capital holds. Natural resources are essential components in sustaining human life as they provide us with vital ecosystem services such as clean water, air, and good nutrition (Kestenbaum, 2013). Additionally, these invaluable commodities assist in moderating climate change and other environmental issues. It is incomprehensible how Solow’ perspective does not recognize their unparalleled importance for a happy and healthy society- especially since many communities heavily depend upon the abundance of natural resources for survival. Therefore, it is crucial to note the distinction between physical and natural capital when delving into economics.

Further, Solow’s view overlooks the key concept of intergenerational equity, which is an essential principle in creating a sustainable environment. This principle emphasizes the need to ensure future generations enjoy the same access to resources and opportunities as today’s generation (Obiageli, 2020). When natural capital is used up faster than it can be replenished, this will mean that future generations will be unable to meet their requirements and fulfill their hopes and dreams. It is therefore imperative that this idea of intergenerational equity is taken into consideration when making decisions about sustainability.

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Therefore, to protect our planet for future generations, it is essential that we recognize the value and importance of natural capital and use sustainable technologies and practices to reduce environmental impact. This means ensuring that we are not taking more from the environment than can be safely replaced (Fisher, 2020). We must also strive to promote the restoration and conservation of natural resources, such as through using renewable energy sources and decreasing pollution levels. Closer examination of the potential risks posed by our current methods of resource extraction is needed in order to identify methods to reduce these impacts on the environment. In doing so, we will be taking valuable steps towards a more sustainable future with strong foundations in natural capital preservation.

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In conclusion, Solow’s stance clearly disregards the vital role natural capital plays in protecting the environment.

ECON 330 Economic Growth and Scarcity of Natural Resources
ECON 330 Economic Growth and Scarcity of Natural Resources

Therefore, it is crucial to recognize both the value in sustaining life and the availability to future generations. Drawing from this, a sustainable approach would involve understanding the preciousness of natural resources and seeking strategies to both protect these invaluable assets and secure their presence over multiple generations (Farrukh et al., 2020). Doing so could preserve our environment for many years to come.

References

Farrukh, A., Mathrani, S., & Taskin, N. (2020). Investigating the theoretical constructs of a green lean six sigma approach towards environmental sustainability: a systematic literature review and future directions. Sustainability12(19), 8247. https://www.mdpi.com/2071-1050/12/19/8247

Fisher, A. C. (2020). Lecture Notes on Resource and Environmental Economics. Springer International Publishing.

Kestenbaum, D. (2013). Economists Have a One-Page Solution to Climate Change. NPR, http://www. npr. org/templates/transcript/transcript. php. https://www.npr.org/sections/money/2013/06/28/196355493/economists-have-a-one-page-solution-to-climate-change#:~:text=Climate%20change%20seems%20like%20this,the%20problem%3A%20Tax%20carbon%20emissions.

Obiageli, I. A. (2020). Effects of exchange rate on agricultural sector output in Nigeria 1987-2019. International Journal of Innovative Finance and Economics Research8(3), 43-54. http://seahipaj.org/journals-ci/sept-2020/IJIFER/full/IJIFER-S-4-2020.pdf