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The non-extractive economic value of land is its
In 2001, Murray Rudd studied the economic impact of spiny lobsters – or lack thereof – on
Water can also have non-extractive economic value. In their 2002 book, Steven Renzetti considers more indirect impacts of the presence of natural water. For example, Renzetti states that house prices are usually higher near streams or lakes – that is to say, properties near such bodies of water are considered more valuable.
Renzetti also mentions the economic value of recreational uses for water, such as
monetary value
In economics, economic value is a measure of the benefit provided by a goods, good or service (economics), service to an Agent (economics), economic agent, and value for money represents an assessment of whether financial or other resources are ...
the land creates without extracting resources
''Resource'' refers to all the materials available in our environment which are Technology, technologically accessible, Economics, economically feasible and Culture, culturally Sustainability, sustainable and help us to satisfy our needs and want ...
or artificially developing it.
The economic value usually comes in the form of ecotourism
Ecotourism is a form of nature-oriented tourism intended to contribute to the Ecological conservation, conservation of the natural environment, generally defined as being minimally impactful, and including providing both contributions to conserv ...
: it is estimated that hundreds of billions of dollars are generated through visitation to protected area
Protected areas or conservation areas are locations which receive protection because of their recognized natural or cultural values. Protected areas are those areas in which human presence or the exploitation of natural resources (e.g. firewood ...
s, although little profit is reinvested in the preservation of said areas.
Examples
Marine tourism
In 2001, Murray Rudd studied the economic impact of spiny lobsters – or lack thereof – on scuba diving
Scuba diving is a Diving mode, mode of underwater diving whereby divers use Scuba set, breathing equipment that is completely independent of a surface breathing gas supply, and therefore has a limited but variable endurance. The word ''scub ...
. Rudd concludes that "there is justification for placing some positive non-extractive economic value on spiny lobsters", as scuba divers were inclined to pay more for marine tourism if given the guarantee that such lobsters would be present. Because of this, Rudd defends the economic viability of marine protected areas, especially on the Turks and Caicos Islands
The Turks and Caicos Islands (abbreviated TCI; and ) are a British Overseas Territory consisting of the larger Caicos Islands and smaller Turks Islands, two groups of tropical islands in the Lucayan Archipelago of the Atlantic Ocean and no ...
.
In this situation, the sheer presence of spiny lobsters has economic value, without the need for any human extraction or artificial development. A similar case can be perceived, for example, with the Great Barrier Reef
The Great Barrier Reef is the world's largest coral reef system, composed of over 2,900 individual reefs and 900 islands stretching for over over an area of approximately . The reef is located in the Coral Sea, off the coast of Queensland, ...
: profit can be made from it simply existing, and as such, there is intrinsic, long-lasting economic value in preserving the reef from dangers such as coral bleaching
Coral bleaching is the process when corals become white due to loss of Symbiosis, symbiotic algae and Photosynthesis, photosynthetic pigments. This loss of pigment can be caused by various stressors, such as changes in water temperature, light, ...
.
Water
Water can also have non-extractive economic value. In their 2002 book, Steven Renzetti considers more indirect impacts of the presence of natural water. For example, Renzetti states that house prices are usually higher near streams or lakes – that is to say, properties near such bodies of water are considered more valuable.
Renzetti also mentions the economic value of recreational uses for water, such as recreational fishing
Recreational fishing, also called sport fishing or game fishing, is fishing for leisure, exercise or competition. It can be contrasted with commercial fishing, which is occupational fishing activities done for profit; or subsistence fishing, ...
and visits to beaches
A beach is a landform alongside a body of water which consists of loose particles. The particles composing a beach are typically made from Rock (geology), rock, such as sand, gravel, shingle beach, shingle, pebbles, etc., or biological s ...
and lakes.
Further, Renzetti also considers a broader definition for non-extractive economic value, including hydropower
Hydropower (from Ancient Greek -, "water"), also known as water power or water energy, is the use of falling or fast-running water to Electricity generation, produce electricity or to power machines. This is achieved by energy transformation, ...
in their list of such uses for water. Although it is definitely non-extractive and sustainable, it does require artificial development, and can have negative environmental impacts – albeit lower than those of comparable fossil fuel
A fossil fuel is a flammable carbon compound- or hydrocarbon-containing material formed naturally in the Earth's crust from the buried remains of prehistoric organisms (animals, plants or microplanktons), a process that occurs within geolog ...
energy sources.
See also
*Ecotourism
Ecotourism is a form of nature-oriented tourism intended to contribute to the Ecological conservation, conservation of the natural environment, generally defined as being minimally impactful, and including providing both contributions to conserv ...
References
Bibliography
* * Real estate terminology {{Economics-stub