NATURAL CAPITAL Meaning and
Definition
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Natural capital refers to the stock of natural resources such as forests, rivers, minerals, and other ecosystems that provide benefits to people, both directly and indirectly. It encompasses all elements of the natural environment that contribute to human well-being and economic activities. This concept recognizes nature as an essential form of wealth that can provide a range of goods and services essential for human survival and sustainable development.
The value of natural capital lies in the various ecosystem services it provides, including clean air and water, habitat for biodiversity, climate regulation, soil fertility, and the provision of raw materials for industries. These services are vital for sustaining life and maintaining the functioning of societies and economies. Natural capital can be both renewable, such as forests that can be regrown, and non-renewable, like fossil fuels that are finite.
Understanding and valuing natural capital is crucial for achieving environmental sustainability and ensuring the long-term well-being of present and future generations. It involves recognizing the interconnectedness of ecosystems, human activities, and economic development. By assessing, managing, and conserving natural capital, society can strive towards sustainable development that promotes the responsible use of resources, preservation of ecosystems, and equitable distribution of benefits derived from nature.
Etymology of NATURAL CAPITAL
The term "natural capital" has its roots in economics and environmental science. The word "capital" in this context refers to a stock of wealth, resources, or assets that can be utilized or invested in for economic or social gain.
The term "natural" refers to the resources and systems provided by nature. It encompasses elements such as forests, rivers, minerals, biodiversity, and ecosystems that have inherent value and contribute to human well-being.
The concept of natural capital emerged in the 1980s and gained popularity following the publication of the book "Natural Capitalism: Creating the Next Industrial Revolution" by Paul Hawken, Amory Lovins, and Hunter Lovins in 1999. It expanded on the idea of capital beyond financial and physical resources to include the value and importance of natural resources in economic development.
