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Economics Outright: Management of Natural Resources

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Abstract

A review of knowledge relating to natural resource management in agriculture, fishery, forestry and other sectors shows that resource use criteria and views of sustainability differ between the sectors. Economic growth, valuation, property rights, access to resources, overuse and pollution create controversies in the governance process. Conflicting views of the economy and the interpretations of sustainability need to be mediated in practices of resource management. The forms of integrated and ecosystem-based resource management appear as pragmatic solutions for the sustainable management of natural resources, where economic and ecological criteria need to be balanced.

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Appendices: Further Information and Material

Appendices: Further Information and Material

1.1 Learning Exercise 1. Definitions of Economics and Economy and Their Practical Utility

Discuss as a group the descriptions and definitions of economics as a scientific discipline and the views of the economy (using Box 4.1). You can also watch short videos on “economics” and “economy” on the internet to prepare for the discussion.

The following questions should be answered: what are the consequences of the pluri-paradigmatic state of economics (that there exist many views, paradigms, approaches and theories in economics and in subdisciplinary subjects such as environmental economics)? (How) can one work with different theories simultaneously?

Thinking about definitions of economics and economy: what are the purposes of general definitions of economics—what can they say about the practise of teaching and research in economics? What are the limits of abstract definitions of economics? Answer the same questions for definitions of the economy as a process or system.

1.2 Learning Exercise 2: The Tragedy of the Commons

Discuss, individually or as a group, based on the information given in Box 4.3 of this chapter, the question:

What is the significance of the discourse of the tragedy of the commons for the current problems of natural resource use at local, national or global scale? Further questions that come up in the search for an answer should also be discussed: is the concept of the commons still relevant today (when most of the resources are exchanged, bought and sold on markets and under private property regimes)? Should the concept of the commons be used in more specific and historically concrete variants (as a form of property rights), or in broader, generalised and more inexact forms (as all forms of collective or shared use of resources)? Can you specify under what conditions common property of resources works better for maintaining the resource use in the long run, and under what conditions private property forms work better?

If you want to deepen the discussion, read the article by Hardin (1968) and his later short updates (Hardin 1994, 1998).

1.3 Learning Exercise 3: The Circular Economy as a Component of Sustainability Transformation

Discuss as a group the advantages and limits of a circular economy as it is described in the chapter. To prepare for the discussion you can also watch one of the videos about circular economy on the internet or read the executive summary of the 2012 report “Towards the Circular Economy: Economic and Business Rationale for an Accelerated Transition” from the Ellen MacArthur Foundation (which can be found on the internet).

The following questions should be discussed: is the circular economy a coherent concept and strategy, or a collection of various ideas and principles? Is the circular economy sufficient for sustainable development? What else in terms of economic, social or ecological criteria is required to achieve sustainability? Is the circular economy a new form of the market economy, or part of the transformation to another form of post-industrial and post-growth economy?

1.4 Learning Exercise 4: Bioenergy—A Controversial Case in the Building of Sustainable Energy Systems

The energy sector is key to the transformation of the economy to sustainability, which began in many countries with the use of renewable energy sources to curtail the severe environmental damage caused by the use of fossil resources such as coal, oil or gas. Particularly difficult problems arise from the use of bioenergy in the building of sustainable energy systems.

Bioenergy includes resources such as wood, waste and agricultural residues such as straw, forests and grasslands, and feedstocks in agriculture; its production causes CO2 emissions, which are a main cause of climate change and global warming. The question of whether bioenergy use is environmentally friendly is not easily answered; much depends on the conversion technologies and their commercial use. For example, biofuels or biodiesel for cars cause further problems when the systems of transport are not changed further; better in terms of sustainable energy use seems to be electrification based on renewable sources and sustainably produced biomass (which is not the case with all biomass production). Discussion of the prospects of renewable energy sources and bioenergy from agricultural land involves value-based and ethical questions and decisions, including the following:

Should agricultural land be used for production of bioenergy or for food production? How much bioenergy can be produced sustainably, and by what means, through sustainable forms of land use? How can sustainable development be operationalised to determine the sustainability of bioenergy production (the book suggests criteria in terms of climate protection, biodiversity maintenance, soil protection, and socio-economic criteria such as food security and health risks through energy use)? Critical questions include the consequences of indirect land use change caused by biofuel production and the time it will take for CO2 emissions to be significantly reduced, while in the meantime global warming continues.

Suggested tasks and questions for further reflection and discussion (individually or in a working group): Read about bioenergy production and its environmental effects on the internet; discuss how bioenergy production and use can be made sustainable. Discuss the ethical problems with bioenergy production from agricultural land instead of food production under conditions of hunger and malnutrition. Use the discussion of bioenergy production to find out more about the roles and forms of technologies in achieving sustainability.

1.5 Learning Exercise 5: Critical Discussion of the TEEB Project of Economics of Ecosystem Services

Discuss (individually or as a group) the information in Sect. 4.3.2 of this chapter on the problems with the commodification and privatisation of living resources, genetic resources and ecosystems, using the example of TEEB.

TEEB raises critical ethical questions about the limits of commodification and privatisation of natural resources, and about the continuation of economic growth through the exploitation of the natural resources in terrestrial and marine ecosystems. Your discussion should address the following questions: for which natural resources (physical or biological resources) should commercial use and monetarisation, buying and selling, be allowed, and for which resources should they be prohibited (based on ethical and ecological arguments)? What are the (wanted and unwanted) consequences when complex resources (ecosystems, biodiversity) are commodified and traded? Can ecosystems and biodiversity, as TEEB is arguing, be protected through privatisation and commodification? Who benefits most from TEEB, and who is disadvantaged?

These questions are not easily answered, but preliminary answers regarding the advantages and disadvantages of the commercialisation of nature and natural resources can be found through the discussion. If you want to deepen the discussion, you can easily find information about TEEB on the internet.

1.6 Further Readings Suggested: Deepening, Thematically Specialised

Policy-related—private and public natural resource management: Morrison-Saunders, A., Pope, J., & Bond, A. (Eds.). (2015). Handbook of Sustainability Assessment. Cheltenham, UK and Northampton, MA: Edward Elgar

Science-related—resource economics, environmental management: Leal Filho, W. (Ed.). (2018). Handbook of Sustainability Science and Research. Cham, Switzerland: Springer Nature

Scientific journals (international peer reviewed) with research relevant for the themes of this chapter: “Agricultural Economics”, “Agriculture, Ecosystems and Environment”, “Annual Review of Resource Economics”, “Coastal Management”, “Conservation Letters”, “Ecological Indicators”, “Ecosystem Services”, “Environmental Policy and Management”, “Environmental Management”, “Food Policy”, “Forest Policy and Economics”, “Journal of Bioeconomics”, “Journal of Economics and Sustainable Development”, “Journal of Environmental Economics and Management”, “Journal of Industrial Ecology”, “Marine Policy”, “Marine Resource Economics”, “Natural Resources Journal”, “Resource and Energy Economics”, “Review of Environmental Economics and Policy”, “Urban Studies”

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Bruckmeier, K. (2020). Economics Outright: Management of Natural Resources. In: Economics and Sustainability. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-56627-2_4

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  • DOI: https://doi.org/10.1007/978-3-030-56627-2_4

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