
New framework for natural capital approach to transform policy decisions - westurner
https://phys.org/news/2020-08-framework-natural-capital-approach-policy.html
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westurner
Natural capital:
[https://en.wikipedia.org/wiki/Natural_capital](https://en.wikipedia.org/wiki/Natural_capital)

> _Natural capital is the world 's stock of natural resources, which includes
> geology, soils, air, water and all living organisms. Some natural capital
> assets provide people with free goods and services, often called ecosystem
> services. Two of these (clean water and fertile soil) underpin our economy
> and society, and thus make human life possible._

Natural capital accounting:
[https://en.wikipedia.org/wiki/Natural_capital_accounting](https://en.wikipedia.org/wiki/Natural_capital_accounting)

> _Natural capital accounting is the process of calculating the total stocks
> and flows of natural resources and services in a given ecosystem or
> region.[1] Accounting for such goods may occur in physical or monetary
> terms. This process can subsequently inform government, corporate and
> consumer decision making as each relates to the use or consumption of
> natural resources and land, and sustainable behaviour._

Opportunity cost:
[https://en.wikipedia.org/wiki/Opportunity_cost](https://en.wikipedia.org/wiki/Opportunity_cost)

> _When an option is chosen from alternatives, the opportunity cost is the
> "cost" incurred by not enjoying the benefit associated with the best
> alternative choice.[1] The New Oxford American Dictionary defines it as "the
> loss of potential gain from other alternatives when one alternative is
> chosen."[2] In simple terms, opportunity cost is the benefit not received as
> a result of not selecting the next best option. Opportunity cost is a key
> concept in economics, and has been described as expressing "the basic
> relationship between scarcity and choice". [3] The notion of opportunity
> cost plays a crucial part in attempts to ensure that scarce resources are
> used efficiently.[4] Opportunity costs are not restricted to monetary or
> financial costs: the real cost of output forgone, lost time, pleasure or any
> other benefit that provides utility should also be considered an opportunity
> cost. The opportunity cost of a product or service is the revenue that could
> be earned by its alternative use._

How do we value essential dependencies in terms of future opportunity costs?

~~~
westurner
In terms of just mental health?

"National parks a boost to mental health worth trillions: study"
[https://phys.org/news/2019-11-national-boost-mental-
health-w...](https://phys.org/news/2019-11-national-boost-mental-health-
worth.amp)

> _Visits to national parks around the world may result in improved mental
> health valued at about $US6 trillion (5.4 trillion euros), according to a
> team of ecologists, psychologists and economists_

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westurner
> _Professor Bateman 's decision-making framework focuses on the links between
> the environment and economy and has three components: _efficiency _,
> assessing which option generates the greatest benefit;_ sustainability _,
> the effects of each option on natural capital stocks; and_ equity _,
> regarding who receives the benefits of a decision and when._

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westurner
Ian J. Bateman et al. "The natural capital framework for sustainably efficient
and equitable decision making", Nature Sustainability (2020). DOI:
10.1038/s41893-020-0552-3
[https://www.nature.com/articles/s41893-020-0552-3](https://www.nature.com/articles/s41893-020-0552-3)

