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From An Economic Point-Of-View What Makes Natural Resources Different Term Paper

Natural Resources from an Economic Point-of-View Natural resources have significant values in a country's economic growth. In general, the economic prosperity of a country depends on the optimal effort of the country to utilize its natural resources properly and convert them into multiple profits. Commonly a country benefits from the natural resources from the diversity and maximum exploitation of the resources. Natural resources provide the country with direct benefit from raw and processed materials used as trade commodities, the utilization of the resources to be the medium of economic activities, and from leasing the resources to other parties, which will collect additional income for the country such as from taxes, lease and service fees.

Even if a country gets an extraordinary supply of natural resources every year, it is important that the society has the ability to maintain the sustainability of the resources. In the appropriate maintenance, the resources can give people a living space for the community, high-quality environment and at the same time fulfills the need of the country citizens for generations in unlimited time span.

The UK government has brought the issue to surface and seriously implement the sustainable development concept in the decision-making process. Economic calculation of the commercial value of a kind of natural resources material is not the only factor to determine how people should make the most of the material and gain profit from it. The resources have exclusive values that interrelate with other factors such as economic, political and ethical value. During the process of development, such values often collide with each other, causing inconsistency in the system and endangering the nature...

If the government fails to provide balanced system to regulate natural resource management, those resources will only fulfill the need of certain parties.
Peace (1997) underlined the important function of accounting system to calculate the value of natural resource. Unlike the other characteristics of physical/infrastructure development, or economic development in general, natural resource management includes the huge risk of damage that should be estimated in "monetary measure."

Porter explains, countries often neglect the requirement of subsidies to cover social and environmental cost. For example, in fish industry, prices should cover the "extraction cost" along with production and damages that commercial ships cause, when major fishing season comes. Commercial fishing companies often get into their operation without calculating the loss from destroyed habitat, decreased fish stocks, the recovery time for the nature to return the stock into normal and available for the next generation. Sometimes the recovery takes years and may not run normally due to the degrading water quality as the effect of pollution and physical damage. This is where environmental cost calculation should take place.

Nature degradation caused by human activities contains moral value and collides with the society's social responsibility. Within a sustainable development framework, accountants should measure the economic value of environmental damage, including the risk of the damage…

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Works Cited

Peace, Robert. "Natural Resource Value." 1997. Faculty of Social Sciences and Law. University of Manchester. 28 Apr. 2004. http://les.man.ac.uk/ipa97/papers/peace12.html

Porter, Gareth. "Natural Resource Subsidies, Trade and Environment: The Cases of Forests and Fisheries." 18 Oct 1996. Center for International Environmental Law. Trade and Environment Policy Project. Nautilus Institute. 28 Apr. 2004. http://www.nautilus.org/papers/enviro/tepp/porterTEPP.html

UK Sustainable Development Commission. "Redefining Prosperity: Resource Productivity, Economic Growth and Sustainable Development." 27 Jun 2003. UK Sustainable Development Commission. 28 Apr. 2004. http://www.sd-commission.gov.uk/pubs/rp/annex.htm
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