CGP223

Introduction to Natural
resources management
Dr. Mukhovi
 Definition
a resource is something which human society attaches
value to due to its usefulness

vA natural resource is an attribute of the environment

appraised by human beings to be of value overtime with
constraints imposed by their social, political, economic and
institutional framework.
v A resource is a social/cultural construct meaning
people give values to resources.

v Definition is influenced by cultural setting, availability

of technology, environment in which resources are
found as well as economic and political contexts.
v Natural Resources are products of nature rather than
products of industry. Examples include: ores, fossil fuels,
land, water and timber.
v Society uses these resources to produce goods and
services demanded by consumers.
v Thus, decisions made by society (agriculture, other
industries, the public, etc.) affect the quantity and quality
of natural resources.
v Value ascribed to resources changes with technology level
of development and human needs
v Many natural resources have not yet been discovered
§ Natural resource economics focuses on the supply, demand,
and allocation of the Earth’s natural resources.
§ Every man-made product in an economy is composed of
natural resources to some degree.
§ Natural resources can be classified as potential, actual,
reserve, or stock resources based on their stage of
development.
§ Natural resources are either renewable or non-renewable
depending on whether or not they replenish naturally.
§ Natural resource utilization is regulated through the use of
taxes and permits.
§ The government and individual states determine how
resources must be used and they monitor the availability and
status of the resources.
Resource need depends on
level of development of
society
This diagram illustrates how society and the
economy are subsets of the environment. It is
not possible for societal and economic
systems to exist independently from the
environment.
For this reason, we focuses on understanding
the role of natural resources in the economy
in order to develop a sufficient and
sustainable economy that protects natural
resources.
 Natural Resource Management (NRM) refers to the
sustainable utilization, conservation of major natural
resources
Maintaining renewability of renewable resources

Prevention of resource degradation is more Social and economic capital is

effective than rehabilitation ultimately created from natural
capital

The precautionary principle should be adopted so Balancing demand and supply of non
that decisions do not result in irreversible loss of renewable resources and sustainable utilization
opportunity. for future generations,
Classification on the basis
of level of renewability Natural resources

Non
Renewable Renewable

Renewable Resources without Storage

Possibilities Depletable Stock Resources

Renewable Resources Capable of

Recyclable Stock Resources
being Stored

Renewable Resources with Augmentable Stock

Earth Surface Resources
vRenewable resources are capable of yielding output
indefinitely without impairing productivity (air, water,
solar energy, wind, biomass, wood, tides
vThe renewable resources have a continuing process of
renewal and supply in nature.
vThe renewability may be affected by human activities.
vThe renewable resources are commonly named “flow
resources”
Renewable resources can be classified further into;
1. Renewable Resources without Storage Possibilities
Examples solar radiation, wind, tide and scenery.
These are the most typical flow resources. Present use of the
flows does not diminish future flows, and if flow continues, use
can be maintained forever.
No possibility exists for substitution of the flow from one time
period to that of another period.
2. Renewable Resources Capable of being Stored
The production from this class of resources may be stored
e.g rainfall used for production of hydroelectric power.
Precipitation can be stored in dams,
3. Renewable Resources with Augmentable Stock
v This class of resources comprises the biological resources that
are by definition all living beings.
v The availability of a reproducible stock is the main
characteristic of these resources.
v For some resources the production is directly related to the size
of the stock (fish, volume of trees).
v In other cases the production is based on use of seeds or tubers
being stored from one season to the next (corn, potatoes).
v Thus human action may influence the flow from these
resources. A “critical zone” for renewal may exist for these
resources.
Non-renewable resources
v are those, which cannot be renewed, or replenished and are affected by
human activity.
v The non-renewable resources are those types of resources whose physical
quantity does not increase significantly with time.
v That means that the rate of renewal is so slow as to be negligible.
v The non-renewable resources are often defined as “stock resources”.
v The total supply of the resource is limited in quantity, and each rate of
use diminishes some future rate of use.
v Non-renewable resources are fixed or finite and usually form over a long
geological period.
v For example, the petroleum we use today as a major source of
commercial energy was formed approximately 300 million years ago.
Most countries depend on non-renewable resources to produce goods and
1. Depletable Stock Resources
v These resources are generally of a geological nature.
v Utilisation of one unit of the resource implies its total destruction and
thereby it is completely lost for future use. Examples are coal, oil and gas
used for energy purposes.
2. Recyclable Stock Resources
v These resources are again typical geological resources with definitive stock.
v There is possibility of reusing the material once used.
v Therefore, in this case utilisation of one unit of the resource does not imply
that it is totally and permanently lost. E.g. metal ores like iron, lead and
copper.
3. Earth Surface Resources
v The permanency of their quantitative properties, such as size, shape, location
and exposure, typifies this category of resources.

v E.g land, atmosphere and hydrosphere.

In terms of the source of origin, natural resources can be
divided into the following types:

§ Biotic: these resources come from living and organic

material, such as forests and animals, and include the
materials that can be obtained them.

§ Biotic natural resources also include fossil fuels such as

coal and petroleum which are formed from organic
matter that has decayed
.
§ Abiotic: these resources come from non-living and non-
organic material. Examples of these resources include
land, fresh water, air, and heavy metals (gold, iron,
copper, silver, etc.).
Natural resources can also be categorized based on their stage of development;

§ Potential resources: these are resources that exist in a region

and may be used in the future.
§
§ For example, if a country has petroleum in sedimentary rocks, it
is a potential resource until it is actually drilled out of the rock
and put to use.

§ Actual resources: these are resources that have been surveyed,

their quantity and quality has been determined, and they are
currently being used. The development of actual resources is
dependent on technology.
§ Reserve resources: this is the part of an actual resource that can
be developed profitably in the future.

§ Stock resources: these are resources that have been surveyed,

but cannot be used due a lack of technology.

§ An example of a stock resource is hydrogen.

 Important terms in natural resources
§ Extraction: the process of withdrawing resources from nature. Extractive
industries are a basis for the primary sector of the economy.

§ The extraction of natural resources substantially increases a country’s wealth.

§ Economists study extraction rates to make sure that resources are not depleted.
Also, if resources are extracted too quickly, the sudden inflow of money can cause
inflation.

§ Economists seek to maintain a sense of balance within extraction industries.

§ Depletion: the using up of natural resources, which is considered to be a global

sustainable development issue.

§ Many governments and organizations have become increasingly involved in

preserving natural resources. Economists provide data to determine how to
balance the needs of societies now and preserve resources for the future.
§ Protection: the preservation of natural resources for the
future.

§ The findings of economists help governments and

organization develop measures of protection to sustain
natural resources.

§ Protection policies state the necessary actions

internationally, nationally, and individually that must take
place to control natural resource depletion that is a result
of human activity.
§ Management: the use of natural resources
taking into account economic,
environmental, and social concerns.

§ This process deals with managing natural

resources such as land, water, soil, plants,
and animals.

§ Particular focus is placed on how the

preservation of natural resources impacts the
quality of life now and for future generations.