1. Boundless Lecture Slides Free to share, print, make copies and changes. Get yours at www.boundless.com Available on the Boundless Teaching Platform

2. Types of Natural Resources Basic Economics of Natural Resources Externalities and Impacts on Resource Allocation Introduction to Natural Resource Economics Natural Resource Economics > Introduction to Natural Resource Economics Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/economics?campaign_content=book_1515_section_136&campaign_term=Economics&utm_campaign=powerpoint&utm_me dium=direct&utm_source=boundless

3. Natural resource economics focuses on the supply, demand, and allocation of the Earth's natural resources. Every man-made product in an economy is composed of natural resources to some degree. Natural resources can be classified as potential, actual, reserve, or stock resources based on their stage of development. Natural resources are either renewable or non-renewable depending on whether or not they replenish naturally. Natural resource utilization is regulated through the use of taxes and permits. The government and individual states determine how resources must be used and they monitor the availability and status of the resources. Types of Natural Resources Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/economics/textbooks/boundless-economics-textbook/natural-resource-economics-36/introduction-to-natural-resource- economics-136/types-of-natural-resources-536- 12633?campaign_content=book_1515_section_136&campaign_term=Economics&utm_campaign=powerpoint&utm_medium=direct&utm_source= boundless Importance of the Environment View on Boundless.com Natural Resource Economics > Introduction to Natural Resource Economics

4. As a field of academic research, natural resource economics addresses the connections and interdependence between human economies and natural ecosystems. By studying natural resources, economists learn how to develop more sustainable methods of managing resources to ensure that they are maintained for future generations. Natural resource economics is studied on an academic level, and the findings are used to shape and direct policy-making for environmental issues. These issues include resource extraction, depletion, protection, and management. Natural resource economics findings impact policies for environmental work including issues such as extraction, depletion, protection, and management. Basic Economics of Natural Resources Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/economics/textbooks/boundless-economics-textbook/natural-resource-economics-36/introduction-to-natural-resource- economics-136/basic-economics-of-natural-resources-537- 12634?campaign_content=book_1515_section_136&campaign_term=Economics&utm_campaign=powerpoint&utm_medium=direct&utm_source= boundless Natural Resource Economics View on Boundless.com Natural Resource Economics > Introduction to Natural Resource Economics

5. An externality is a cost or benefit that affects a party who did not choose to incur the cost or benefit. A negative externality, also called the external cost, imposes a negative effect on a third party. When external costs are present, the market equilibrium use of natural resources is inefficient because the social benefit is less than the social cost. In other words, society would have been better off if fewer natural resources had been used. Positive externalities, also referred to as external benefits, imposes a positive effect on a third party. Assuming that natural resources are used and also sustained, the external benefits of goods produced by natural resources impacts the majority of the public in a positive way. Externalities and Impacts on Resource Allocation Free to share, print, make copies and changes. Get yours at www.boundless.com www.boundless.com/economics/textbooks/boundless-economics-textbook/natural-resource-economics-36/introduction-to-natural-resource- economics-136/externalities-and-impacts-on-resource-allocation-538- 12635?campaign_content=book_1515_section_136&campaign_term=Economics&utm_campaign=powerpoint&utm_medium=direct&utm_source= boundless Negative externality View on Boundless.com Natural Resource Economics > Introduction to Natural Resource Economics

6. Free to share, print, make copies and changes. Get yours at www.boundless.com Appendix

7. Key terms depletion The consumption of a resource faster than it can be replenished. externality An impact, positive or negative, on any party not involved in a given economic transaction or act. natural resource Any source of wealth that occurs naturally, especially minerals, fossil fuels, timber, etc. Renewable Sustainable; able to be regrown or renewed; having an ongoing or continuous source of supply; not finite. sustainable Able to be sustained for an indefinite period without damaging the environment, or without depleting a resource. Free to share, print, make copies and changes. Get yours at www.boundless.com Natural Resource Economics

8. This diagram illustrates that society and the economy are subsets of the environment. It is not possible for social and economic systems to exist independently from the environment. Natural resource economics focuses on the demand, supply, and allocation of natural resources to increase sustainability. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia. "Nested sustainability-v2." CC BY-SA http://en.wikipedia.org/wiki/File:Nested_sustainability-v2.gif View on Boundless.comCC BY-SAhttp://en.wikipedia.org/wiki/File:Nested_sustainability-v2.gifView on Boundless.com Natural Resource Economics

9. Importance of the Environment This diagram illustrates how society and the economy are subsets of the environment. It is not possible for societal and economic systems to exist independently from the environment. For this reason, natural resource economics focuses on understanding the role of natural resources in the economy in order to develop a sufficient and sustainable economy that protects natural resources. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia. "Nested sustainability-v2." CC BY-SA http://en.wikipedia.org/wiki/File:Nested_sustainability-v2.gif View on Boundless.comCC BY-SAhttp://en.wikipedia.org/wiki/File:Nested_sustainability-v2.gifView on Boundless.com Natural Resource Economics

10. Wind Wind is an example of a renewable natural resource. It occurs naturally in the environment and has the ability to replenish itself. It has also been used as a form of energy development through wind turbines. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia. "Alternative Energies." CC BY-SA http://en.wikipedia.org/wiki/File:Alternative_Energies.jpg View on Boundless.comCC BY-SAhttp://en.wikipedia.org/wiki/File:Alternative_Energies.jpgView on Boundless.com Natural Resource Economics

11. Negative externality Air pollution from vehicles is an example of a negative externality. It affects other than those who drive the vehicle and those who sell the gas. Free to share, print, make copies and changes. Get yours at www.boundless.com Wikipedia. "Diesel-smoke." Public domain http://en.wikipedia.org/wiki/File:Diesel-smoke.jpg View on Boundless.comPublic domainhttp://en.wikipedia.org/wiki/File:Diesel-smoke.jpgView on Boundless.com Natural Resource Economics

12. Free to share, print, make copies and changes. Get yours at www.boundless.com Natural Resource Economics Which of the following statements about natural resource economics is TRUE? A) Natural resource economics focuses on the supply, demand, and allocation of natural resources. B) All of the statements are true. C) The goal of natural resource economics is to develop an efficient economy. D) Natural economists focus on natural resource sustainability.

13. Free to share, print, make copies and changes. Get yours at www.boundless.comwww.boundless.com Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/CC BY-SA 3.0http://www.boundless.com/ Natural Resource Economics Which of the following statements about natural resource economics is TRUE? A) Natural resource economics focuses on the supply, demand, and allocation of natural resources. B) All of the statements are true. C) The goal of natural resource economics is to develop an efficient economy. D) Natural economists focus on natural resource sustainability.

14. Free to share, print, make copies and changes. Get yours at www.boundless.com Natural Resource Economics Which of the following is NOT an area of study in regards to natural resource economics? A) Environmental policy B) Unlimited resource extraction C) Environmental management D) Pollution control

15. Free to share, print, make copies and changes. Get yours at www.boundless.comwww.boundless.com Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/CC BY-SA 3.0http://www.boundless.com/ Natural Resource Economics Which of the following is NOT an area of study in regards to natural resource economics? A) Environmental policy B) Unlimited resource extraction C) Environmental management D) Pollution control

16. Free to share, print, make copies and changes. Get yours at www.boundless.com Natural Resource Economics Which of the following statements regarding externalities and natural resource allocation is NOT true? A) For negative externalities, marginal private cost is higher than marginal social or public cost. B) The effects of production and use of natural resources often cause negative externalities. C) For natural resources, positive externalities are the result of sustainability. D) For external benefits, the marginal social benefit equals the marginal social cost.

17. Free to share, print, make copies and changes. Get yours at www.boundless.comwww.boundless.com Boundless - LO. "Boundless." CC BY-SA 3.0 http://www.boundless.com/CC BY-SA 3.0http://www.boundless.com/ Natural Resource Economics Which of the following statements regarding externalities and natural resource allocation is NOT true? A) For negative externalities, marginal private cost is higher than marginal social or public cost. B) The effects of production and use of natural resources often cause negative externalities. C) For natural resources, positive externalities are the result of sustainability. D) For external benefits, the marginal social benefit equals the marginal social cost.

18. Attribution Wikipedia. "Natural resources." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Natural_resourcesCC BY-SA 3.0http://en.wikipedia.org/wiki/Natural_resources Wikipedia. "Natural resource economics." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Natural_resource_economicsCC BY-SA 3.0http://en.wikipedia.org/wiki/Natural_resource_economics Wiktionary. "depletion." CC BY-SA 3.0 http://en.wiktionary.org/wiki/depletionCC BY-SA 3.0http://en.wiktionary.org/wiki/depletion Boundless Learning. "Boundless." CC BY-SA 3.0 http://www.boundless.com//political-science/definition/renewableCC BY-SA 3.0http://www.boundless.com//political-science/definition/renewable Wiktionary. "natural resource." CC BY-SA 3.0 http://en.wiktionary.org/wiki/natural+resourceCC BY-SA 3.0http://en.wiktionary.org/wiki/natural+resource Wikipedia. "Clean Air Act (United States)." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Clean_Air_Act_(United_States)CC BY-SA 3.0http://en.wikipedia.org/wiki/Clean_Air_Act_(United_States) Wikipedia. "Natural resource." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Natural_resourceCC BY-SA 3.0http://en.wikipedia.org/wiki/Natural_resource Wikipedia. "Natural resource economics." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Natural_resource_economicsCC BY-SA 3.0http://en.wikipedia.org/wiki/Natural_resource_economics Wiktionary. "sustainable." CC BY-SA 3.0 http://en.wiktionary.org/wiki/sustainableCC BY-SA 3.0http://en.wiktionary.org/wiki/sustainable Wiktionary. "natural resource." CC BY-SA 3.0 http://en.wiktionary.org/wiki/natural+resourceCC BY-SA 3.0http://en.wiktionary.org/wiki/natural+resource Wiktionary. "externality." CC BY-SA 3.0 http://en.wiktionary.org/wiki/externalityCC BY-SA 3.0http://en.wiktionary.org/wiki/externality Wikipedia. "Resource allocation." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Resource_allocationCC BY-SA 3.0http://en.wikipedia.org/wiki/Resource_allocation Wikipedia. "Natural resource." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Natural_resourceCC BY-SA 3.0http://en.wikipedia.org/wiki/Natural_resource Wikipedia. "Resource." CC BY-SA 3.0 http://en.wikipedia.org/wiki/ResourceCC BY-SA 3.0http://en.wikipedia.org/wiki/Resource Wikipedia. "Externalities." CC BY-SA 3.0 http://en.wikipedia.org/wiki/ExternalitiesCC BY-SA 3.0http://en.wikipedia.org/wiki/Externalities Free to share, print, make copies and changes. Get yours at www.boundless.com Natural Resource Economics