Natural capital facts for kids

Mangrove swamp at Iriomote Island, Japan, providing beneficial services of sediment accumulation, coastal protection, nursery and fish-spawning grounds which may in turn support coastal fishing communities. At least 35% of the world's stock of mangrove swamps has been destroyed in just 20 years

Honeybee (Apis mellifera) pollinating an Avocado crop. Healthy stocks of wild and cultivated pollinator species are important to support the farming industry and help ensure food security.

Natural capital is a metaphor for the mineral, plant, and animal formations of the Earth's biosphere when viewed as a means of production of oxygen, water filter, erosion preventer, or provider of other ecosystem services.

In a traditional economic analysis of the factors of production, natural capital would usually be understood as "land" and therefore something else than "capital" in its original sense.

At the beginning of reflection about economics "land" was seen as something natural, but "capital" as man-made goods only.

But the benefits which humans have from nature are many. 17 of them were closely looked at by Robert Costanza. These benefits are in some ways similar to those that owners of "capital" have as their capital produces more goods, e.g. a factory which produces automobiles just as an apple tree produces apples.

This is an approach to ecosystem valuation, an alternative to the traditional view of all non-human life as passive natural resources. But human knowledge and understanding of the natural environment is never complete, and therefore we cannot yet know what natural capital means exactly.

Other pages

• Natural resource
• Nature's services
• Ecosystem services

Images for kids

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  Aerial view of the Amazon Rainforest. Looked at as a natural capital asset, rainforests provide air and water regulation services, potential sources of new medicines and natural carbon sequestration.

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  Fires along the Rio Xingu, Brazil - NASA Earth Observatory. Loss of natural capital assets may have significant impact on local and global economies, as well as on the climate.

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  The many components of natural capital can be viewed as providing essential goods and ecosystem services which underpin some of our key global issues, such as food and water supply, minimising climate change and meeting energy needs.

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  Phosphorus cycle}}

See also

In Spanish: Capital natural para niños