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The non-extractive economic value of land is its
In 2001, Murray Rudd studied the economic impact of
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 good or service to an economic agent. It is generally measured through units of currency, and the interpretation is therefore "what is the maximum amount of money a speci ...
the land creates without extracting resources
Resource refers to all the materials available in our environment which are technologically accessible, economically feasible and culturally sustainable and help us to satisfy our needs and wants. Resources can broadly be classified upon their av ...
or artificially developing it.
The economic value usually comes in the form of ecotourism
Ecotourism is a form of tourism involving responsible travel (using sustainable transport) to natural areas, conserving the environment, and improving the well-being of the local people. Its purpose may be to educate the traveler, to provide fund ...
: it is estimated that hundreds of billions of dollars are generated through visitation to protected areas, although little profit is reinvested in the preservation of said areas.
Examples
Marine tourism
In 2001, Murray Rudd studied the economic impact of spiny lobster
Spiny lobsters, also known as langustas, langouste, or rock lobsters, are a family (Palinuridae) of about 60 species of achelate crustaceans, in the Decapoda Reptantia. Spiny lobsters are also, especially in Australia, New Zealand, Ireland, So ...
s – or lack thereof – on scuba diving
Scuba diving is a mode of underwater diving whereby divers use breathing equipment that is completely independent of a surface air supply. The name "scuba", an acronym for " Self-Contained Underwater Breathing Apparatus", was coined by Chr ...
. 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 area
Marine protected areas (MPA) are protected areas of seas, oceans, estuaries or in the US, the Great Lakes. These marine areas can come in many forms ranging from wildlife refuges to research facilities. MPAs restrict human activity for a conse ...
s, 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 n ...
.
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 various stressors, such as changes in temperature, light, or nutrients. Bleaching occurs when coral polyps expel the zooxanthellae ( dinoflagellates that are commonly referred to as a ...
.
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 professional fishing for profit; or subsistence fishing, which is fishing fo ...
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, such as sand, gravel, shingle, pebbles, etc., or biological sources, such as mollusc shel ...
and lakes.
Further, Renzetti also considers a broader definition for non-extractive economic value, including hydropower
Hydropower (from el, ὕδωρ, "water"), also known as water power, is the use of falling or fast-running water to produce electricity or to power machines. This is achieved by converting the gravitational potential or kinetic energy of a w ...
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 energy sources.
See also
*Ecotourism
Ecotourism is a form of tourism involving responsible travel (using sustainable transport) to natural areas, conserving the environment, and improving the well-being of the local people. Its purpose may be to educate the traveler, to provide fund ...
References
Bibliography
* * Real estate terminology {{Economics-stub