The foregoing paragraphs have laid out the various pathways through which natural
resources and the environment are related to economic growth and social welfare. Economic
output is sustained and enhanced over time through the maintenance and enhancement of various
environmental service flows, and through the effective protection and management of natural
resource stocks, as well as through the augmentation of natural resource extraction and final
production capacity. Stated another way, diminution of the flows of these natural capital services will reduce economic product for a given stock of output producing capital. Such a
diminution of production possibilities could only be offset, within certain limits, by increased
investment in output producing capital. However, such investments would be subject to
diminishing economic returns as well as some inherent natural limits on their efficacy,4 and in
any event they would engender reductions in current consumption that have a social cost.
Therefore, investment in the maintenance of natural capital services is one of the important
pathways for achieving sustained growth, though the nature of the trade-offs among the various
forms of investment in practice is an empirical question.
The foregoing paragraphs have laid out the various pathways through which naturalresources and the environment are related to economic growth and social welfare. Economicoutput is sustained and enhanced over time through the maintenance and enhancement of variousenvironmental service flows, and through the effective protection and management of naturalresource stocks, as well as through the augmentation of natural resource extraction and finalproduction capacity. Stated another way, diminution of the flows of these natural capital services will reduce economic product for a given stock of output producing capital. Such adiminution of production possibilities could only be offset, within certain limits, by increasedinvestment in output producing capital. However, such investments would be subject todiminishing economic returns as well as some inherent natural limits on their efficacy,4 and inany event they would engender reductions in current consumption that have a social cost.Therefore, investment in the maintenance of natural capital services is one of the importantpathways for achieving sustained growth, though the nature of the trade-offs among the variousforms of investment in practice is an empirical question.
การแปล กรุณารอสักครู่..