Economics Environmental Externalities Questions
The concept of natural capital in ecological economics refers to the stock of natural resources and ecosystems that provide various goods and services to humans. It includes elements such as forests, water bodies, minerals, biodiversity, and air quality. Natural capital is essential for sustaining life and supporting economic activities. It is often categorized into three types: renewable resources (e.g., forests), non-renewable resources (e.g., fossil fuels), and ecosystem services (e.g., pollination, water purification). Recognizing and valuing natural capital is crucial for understanding the environmental externalities associated with economic activities and ensuring their sustainable use and conservation.