One page written reflection on the concept of the substitutability of natural capital - Research Paper Example

Substitutability of Natural Capital Natural and manmade resources are critical to the survival of human beings all over the world. The use of natural resources, however, continues to deplete natural reservoirs without adequate replacement in the same regard. This has continuously caused a sustainability issue, where experts express their concerns in regards to future generations. In other words, sustainability is contentious issue, an aspect that gives rise to the natural capital substitutability debate.

The environment freely gives natural capital. the society and more so the business world has been swift in making use of natural capita to produce goods and services that further aid people’s life in one way or another. In this respect, natural capital plays an important role in the life and existence of every individual around the world. The continued use of natural capital brings into perspective the concepts of sustainability and substitutability (Markandya and Suzette 9). In essence, these concepts are critically intertwined.

The substitutability of natural capital has a direct effect on the sustainability of resources in the environment.The idea of substitutability implies finding an alternative use in place of natural capital. Economists and environmentalists agree to disagree that human capital can substitute natural capital. While some hold the view of human capital replacing natural capital, others contend that the two can only work side by side as opposed to outright substitutability. As a result, the concept of substitutability is not only contentious but also diverse.

On one hand, the substitutability of natural capital can be said to be weak. From this point of view, human capital could move in to replace natural capital that could otherwise be depleted from the environment. The idea is to minimize the use and exploitation of natural capital while maximizing the use of human capital (Hussen 144). In this view, human-driven activities take over the place of natural capital without generating catastrophic effects on the environment. For example, generating electricity from wind could ensure substitutability of natural capital through producing energy without harming the natural environment.

Another key example is the use of solar panels as opposed to mining coal and oil, both of which are extremely hard to replace.On the other hand, it is difficult to achieve a balanced substitutability of natural capital. In many instances, both natural and human capitals work hand in hand. This means that it is difficult to achieve a one hundred percent substitutability of natural capital, where only human capital will be in use. As a result, both human and natural capitals become complementary factors in the environment (Hussen 193).

what this observation reveals is that natural capital substitutability is a tricky practice that requires critical and creative approach for optimal results.Finally yet importantly, the substitutability of natural capital is purely based on the sustainability debate. In order to achieve the desired level of environmental sustainability, both human and natural capitals come into play. On the same note, natural capital drives the environment and guarantees generations of their welfare from time to time.

In this respect, substitutability of natural capital translates to the welfare of future generations.Works CitedHussen, Ahmed. Principles of Environmental Economics. New York: Psychology Press, 2004. Print.Markandya, Anil, and Suzette Pedroso-Galinato. How Substitutable is Natural Capital? Washington, D.C: World Bank Publications, 2006. Print.