The amount of natural resources has continually reduced due to increased demand of an ever-growing population. However, the cost of natural resources has not risen as expected due to technological advancements. There is a prediction that in the coming years, the cost of all natural resources will be high since technology will no longer be a leveling factor.
Keywords- scarcity, natural resources, cost, technology
I wish to pass my special thanks to my course tutor and classmates who helped me complete this paper. The paper has enabled me to acquire a lot of information and hence, I have gained new knowledge on matters concerning the economics of natural resources.
Economics of natural resources scarcity
The paper addresses the problem of scarcity of natural resources globally. In the article, Krautkraemer compares the availability of resources over the last five decades to prove that natural resources are diminishing (Krautkraemer 3). The topic is important for every person depends on natural resources in one way as a mechanism for survival. The population of the globe has been increasing in every decade, whereas the amount of available resources has not been increasing. An increase in population leads to a significant increase in the demand of natural resources. Most natural mines of natural resources are not rechargeable and hence the more they are used, the more they reduce (Spilsbury 21).
Surprisingly, the statistical data shown on the graphs indicate that the prices of natural resources have reduced over time despite their availability going low. For example, the graphs show that the price of petroleum has significantly reduced over the years, despite the volume of natural resources for petroleum going down. Krautkraemer analyses the price index of copper over a period of fifty years and conclude that the prices have reduced despite the minerals amount becoming low (Krautkraemer 33). The article explains that technological advancements have the supporting factor in the unexpected trend since modern technology has eased the mining process. The paper also evaluates the housing sector and the agricultural sector, and it notes that the resources available for these economic activities have reduced although costs have not significantly changed.
The article is important since it prospects the future condition of the world with respect to the cost of natural resources. The writer concludes that the costs of natural resources are expected to be very high in the future for technology will no longer be a leveling factor when the natural resources become extremely low. The writer has done extensive research and investigation and has compiled important information on natural resources in relation to costs in the future (Krautkraemer 40). The writer has graphical data to illustrate the trends on the cost of natural resources over the years. The graphical data used is backed up with a literature review that enables the writer to make viable perspective of the state of natural resources in the future.
Thornton uses information from the article during his research on the implications of mining on the environment. Thornton cites information from the graphs in the article to illustrate how the cost of construction has risen due to exhaustion of quarries (Thornton 359). He says that the cost of building blocks and sand have skyrocketed as a result of the reduced amount of natural resources. Thornton also cites information about copper mining from the article to illustrate how long-term mining has reduced the natural deposits of copper and how it has impacted the market prices of copper (Thornton 361).
Natural resources benefits everyone in the society in diverse ways and hence it is a topic that involves everyone (Jakab44). The writer has used simple English and has avoided the use of technical terms and hence the article is readable and easily understandable. The explanations and uses of relevant examples to make the paper easily readable. In conclusion, the article is well done and provides important information.
Jakab, Cheryl. Natural Resources. North Mankato, Minn: Smart Apple Media, 2008. Print.
Krautkraemer, Jeffrey A. "Economics of Natural Resource Scarcity: The State of the Debate." Resources for the future 1 (1), p. 1-45.
Spilsbury, Louise. Natural Resources. Chicago: Heinemann Library, 2010. Print.
Thornton, I. (2006). Impacts of mining on the environment; some local, regional and global issues. Environmental depletion, 1 (1), p. 355-361.