The Nature of Natural Capital
- Natural capital provides goods (tangible products such as timber and crops) and services
- These good and services have great value to human societies
- This value may be aesthetic, cultural, economic, environmental, ethical, intrinsic, social, spiritual or technological
The Value of Natural Capital
| Value Type | Description | Example |
| Aesthetic | The value derived from the beauty, visual appeal, and enjoyment of natural landscapes and biodiversity | Appreciating a stunning sunset over a pristine beach or enjoying the vibrant colours of a diverse coral reef |
| Cultural | The significance of natural capital in shaping cultural practices, traditions, and identities of communities | Indigenous communities relying on forests for their livelihoods and incorporating traditional ecological knowledge in their practices |
| Economic | The contribution of natural capital to economic activities through the provision of raw materials, fuels, food, and other tangible products | The logging industry relying on forests for timber production or agriculture relying on fertile soils for crop cultivation |
| Environmental | The importance of natural capital in providing essential ecosystem services that support the health and functioning of ecosystems | Wetlands purifying water by filtering pollutants or forests sequestering carbon dioxide and mitigating climate change |
| Ethical | The recognition that natural capital possesses intrinsic worth and deserves ethical consideration and protection | Advocating for the preservation of endangered species to prevent their extinction and preserve biodiversity |
| Intrinsic | The inherent worth of natural capital, independent of its instrumental value to humans | Recognising the value of untouched wilderness as an irreplaceable aspect of the Earth's natural heritage |
| Social | The contribution of natural capital to human well-being, including recreational spaces, opportunities for physical and mental health, and fostering social cohesion | Community gardens can provide a space for people to connect with nature, grow food together, and strengthen social bonds |
| Spiritual | The spiritual significance and connection to nature, with natural capital serving as a source of spiritual nourishment for some communities | Sacred mountains revered for their spiritual significance, where individuals seek solace, reflection, and spiritual experiences |
| Technological | The inspiration and utilisation of natural capital in technological advancements and innovations | Biomimicry is an example, where the design of a building is inspired by the cooling properties of termite mounds, leading to energy-efficient architecture |
- This highly diverse range of values associated with natural capital highlights the significance of preserving and sustainably managing these resources for the benefit of both present and future generations
Cartoon found on Mesoamerican Society for Biology and Conservation Belize
Flood protection provided by mangroves, or erosion prevention and climate regulation are examples of intangible services provided by forests
The Dynamic Nature of Natural Capital
- The concept of natural capital is highly dynamic, as its classification and market value can vary regionally and over time
- Cultural factors influence the value assigned to certain natural resources
- For example, cork forests in Portugal have been recognised as valuable natural capital due to their importance in the wine industry and the cultural heritage significance associated with this
- Social factors can influence the perceived value of natural capital
- For example, in regions where uranium mining is seen as a threat to human health and the environment, uranium may be regarded as negative or harmful natural capital
- Economic factors play a significant role in determining the market value of natural capital
- Resources like lithium, which are essential for battery production in the growing electric vehicle industry, have seen increased market value and demand
- Environmental factors, such as the physical scarcity or abundance of a resource, can influence its status as natural capital
- In areas with significant lithium deposits, such as the lithium triangle in South America, lithium has become a valuable natural capital due to its critical role in energy storage
- Technological advancements can influence the value of natural capital
- For example, flint - once an important resource used for hand tools - is now redundant as it was superseded by the development of metal extraction from ores
- More recently, the increased demand for renewable energy sources has led to a higher market value for resources like lithium, which is used in rechargeable batteries for solar and wind energy systems
- Political factors, including regulations and policies, can shape the perception and market value of natural capital
- Governments can impose restrictions or incentives that affect the extraction and use of certain resources, such as limiting uranium mining due to environmental concerns
- These examples highlight how the status and marketable value of natural capital can vary based on a range of factors, emphasising the dynamic nature of the concept and its dependence on cultural, social, economic, environmental, technological, and political influences
