Economics of Nature Using Theme Introduction to

Economics of Nature Using

Theme: Introduction to Economics of Nature Using 1. Natural resources of the Biosphere 2. Nature Using. Main laws of NU 3. Tasks of Economics of NU

1. Natural resources of the Biosphere • The problem of limited resources – one of the aspect of Environment crisis. • Limited resources : Ø components of Environment Ø Used for satisfaction of material and cultural needs of humanity ( resources of plant and animal world; land, forest, water, recreational and esthetic resources)

1. Natural resources of the Biosphere 2 groups of essential (natural) resources: inexhaustible non-renewable

1. Natural resources of the Biosphere • Non- Inexhaustible resources – quantitively inexhaustible part of NR (sun, gravity, geothermal, wind energy, as well as the energy of ocean waves, flowing water; sometimes atmosphere and hydrosphere). • Inexhaustible resources - the quantity of which steadily decreases since their extraction, or removal from the natural environment.

1. Natural resources of the Biosphere • Renewable resources - clean air, water, fertile soil, vegetation, fauna. • Non-renewable resources - fossil fuel, metallic minerals (iron, copper, etc. ), Nonmetallic minerals (clay, sand, and other phosphates. ).

1. Natural resources of the Biosphere • Recreational resources - resources that provides recreation and restoration of health and human work ability. • Esthetic resources - a combination of natural factors, positively influencing on the people's spiritual wealth.

2. Nature Using. Main laws of NU • Nature using is theory and practice of using of natural environment and resources by human. • the sphere of social and productive activities directed to satisfy the human needs, to improve the use of natural resources of the biosphere.

2. Nature Using. Main laws of NU • There are two types of nature using: rational and irrational. • Rational NU - a system of activities directed to the most economical exploitation of natural resources and their effective reproduction based on long-term interests of humanity. • Irrational NU - a system of activities, which does not provide the preservation of the natural resource’s potential of the planet. Besides that it leads to the depletion of natural resources, undermining the recovery forces of the biosphere, the reduction of health and aesthetic qualities of the environment

2. Main laws of NU 1. The Law of limited Natural resources (Закон ограниченности природных ресурсов): all resources and environmental conditions are limited Ø Limits of natural resources, also the environmental conditions influence on the productive forces of society, then on the social relations

2. Main laws of NU 2. The rule of integral resource (правило интегрального ресурса), sectors of the economy , competing in the use of specific natural systems will inevitably harm each other. Ø the more stronger, the greater they change together the exploited environmental component or the entire ecosystem as a whole.

2. Main laws of NU 3. The law of falling natural resource potential (Закон падения природноресурсного потенциала) Ø within the same socio-economic structure, method of production and type of technology they are made less available and require an increase of payments for works and energy for their extraction, transportation, as well as reproduction.

2. Main laws of NU 4. Law reducing the energy efficiency of NU (закон снижения энергетической эффективности природопользования) Ø with the course of historical time in the production of 1 unit product more energy is spent , but energy costs for the life of one person all the time increasing. Ø This law leads for using of new technologies of industrial and agricultural production, thereby avoiding heat (thermodynamic) crisis and current ecological crisis

2. Main laws of NU 5. Rule of conversion measure of the natural systems (правило меры преобразования природных систем) Ø the conversion of natural systems is possible only within the restricted private laws and properties of natural formations.

2. Main laws of NU 6. Rule (inevitable) chain reactions "hard" control of nature (правило неизбежных цепных реакций «жесткого» управления природой: ). Ø "hard", as a rule, the technical management of the natural processes fraught with chain reactions, most of which is environmentally, socially and economically unacceptable in a long time interval. Ø Indeed, technological changes cause the law of the internal dynamic balance and a significant increase in energy consumption according to the law reducing the energy efficiency of nature using.

2. Main laws of NU 7. The rule of the territorial ecological balance (Правило территориального экологического равновесия ): Ø the maximum ecological and socioeconomical effect can be obtained with an optimal combination of space, transformed by man, and natural ecosystems.

3. Tasks of Economics of NU • The object and subject of Economics of NU define the tasks which are considered at micro-, macro- and international levels.

Main tasks of ecological and economical microanalysis: Ø Establishment of choice for alternative uses of the environment as a public good, and certain types of natural resources in the conditions of their limitations Ø economic assessment of natural resources and environmental services Ø Establishment of criteria and indicators for efficiency of nature conservation activity

Main tasks of ecological and economical microanalysis: Ø analysis of market failures in the environmental field, identifying the boundaries and characteristics of the market of natural resources, environmental goods and services Ø analysis of the external effects of NU, and their internationalization; coordination of individual and social optimum environment use Ø development of methods for assessment of environmental and economic damage, and use the results to address specific problems of environmental policy

Main tasks of ecological and economical macroanalysis: Ø Development of macroeconomic models with the requirements of environmental safety and the implementation of national sustainable development policy Ø Inclusion of environmental natural resource parameters into system of national accounts, the analysis of the impact of environmental policies on macroeconomic indicators, the formation of national “green” accounts

Main tasks of ecological and economical macroanalysis: Ø the integration of environmental aspects and sustainable development criteria in the development of macroeconomic policy Ø development and establishment of the national environmental policy according to the requirements of economic efficiency, environmental safety and social justice.

Tasks of the Economics of NU at global and international level Ø economic assessment of transboundary and global environmental pollution and the development of appropriate regulatory tools Ø Registration environmental effects and restrictions of international trade and monetary-financial relations in theory and practice

Tasks of the Economics of NU at global and international level • Establishment of influence of environmental policy on comparative advantages and competitiveness of production • Studying of environmental policy of the different countries • Theoretical basement and development of environmental policy at intercountry scale to meet the requirements of Sustainable Development policy