ECON 330 Week 8: Economic Growth and Scarcity of Natural Resources
ECON 330 Week 8 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.
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.
In conclusion, Solow’s stance clearly disregards the vital role natural capital plays in protecting the environment. 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.
ECON 330 Week 8: Economic Growth and Scarcity of Natural Resources 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. Sustainability, 12(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 Research, 8(3), 43-54. http://seahipaj.org/journals-ci/sept-2020/IJIFER/full/IJIFER-S-4-2020.pdf
Please note that if you edit your initial response (original post), you will not get credit for the original post. The discussions are set up as “Must post first.”
As discussed in Chapter 11 of Keohane and Olmstead, Nobel Prize winning economist Robert Solow argued that natural resources
(natural capital) and created resources (physical capital) are interchangeable to the extent that they can be used to produce the goods and services that satisfy human wants and needs. As such, Solow argued, as long as there is sufficient capital of any type available to allow future generations to satisfy their wants and needs, it does not matter if the current generation depletes natural capital as long as it is replaced with appropriate new technologies and new physical capital.
For this week’s discussion, explain whether you agree or disagree with Solow’s view of natural resources and sustainability and why. Include a discussion of intergenerational equity as part of your answer.
To help with this week’s discussion, please find Robert Solow’s original lecture on sustainability at the link below. I think you will find it a bit more nuanced than the short synopsis of the lecture provided in the text. Many students object to the theory on the basis that it doesn’t call for the protection of any particular species or that it requires more knowledge about the wants and needs of future generations than we can possibly have. I think you’ll have a better understanding of Solow’s view of these two issues if you read pp. 180-82 in the attached (and you may be less quick to dismiss or condemn his presentation as a result).
I look forward to a spirited discussion on this issue.
/content/enforced/67696-491072/Solow.Sustainability_An_Economists_Perspective._1993.docx
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