Ecological Economics: Basic concepts

Lecture 04
Natural Capital Accounting
Physical accounting for natural capital

• that estimates the stock or services of natural resources in

physical, rather than economic, terms to show the abundance
or scarcity of natural resources and to estimate their
variations from year to year.

• Accounts that indicate significant resource depletion or

environmental degradation call for measures to conserve or
restore natural capital.
 Determination of sustainable yield levels

• An ecological analysis of a natural system harvested for human use

can help to determine the sustainable yield level at which the
system can continue to operate indefinitely.

• a yield or harvest level that can be maintained without diminishing

the stock or population of the resource.
Determination of the absorptive capacity of the environment

• the ability of the environment to absorb and

render harmless waste products.
 Methodological Pluralism in
Ecological Economics

Why cross and mix disciplines and

methodologies?
Current Economic Model VS Ecological Economics