Role of Natural Capital Economics for Sustainable Management of Earth Resources

Abstract

Natural capital is the wealth of nations that determine their economic status. Worldwide, vulnerable people depend on natural capital for employment, salaries, wealth, and livelihoods and, in turn, this determines the developmental index of the nation to which they belong. In this short review, we have tried to sum up the ideas and discussions over natural capital’s role in ascribing economic status to countries as well as the need for natural resource management and sustainability. This paper aimed to discuss how humanity’s prosperity is intertwined with the services that ecosystems provide, and how poor natural resource management (NRM) has adversely affected human well-being. Our preselected criteria for the review paper led us to evaluate 96 peer-reviewed publications from the SCOPUS database, which is likely the most comprehensive archive of peer-reviewed scientific literature as well as WoS, PUBMED, and Google Scholar databases. Our review revealed that the availability of ecological services is crucial for clean water and air, food and fodder, and agricultural development. We further discussed important concepts regarding sustainability, natural capital and economics, and determinants of human well-being vis-à-vis the intergenerational security of natural wealth. To ensure current and future human well-being, we conclude that an in-depth understanding of the services that ecosystems provide is necessary for the holistic management of the Earth system.