Natural resource scarcity – classical to contemporary views

Abstract

This paper reviews the literature on the concept of natural resource scarcity and discusses the strengths and weaknesses of traditional measures of resource scarcity. Through examination of the concept of generalized resource scarcity from the classical view to the more conventional and the contemporary views, an effort is made to identify suitable means of detecting scarcity. It also represents a point of departure into the larger debate of the measurement aspects of the scarcity of natural resources. With the rising public awareness and interest in environmental quality, it has become common to point out that conventional scarcity indicators do not take environmental costs into account, and hence give misleading signals regarding natural resource scarcity. The paper highlights the more recent developments and the contemporary view on the issue of sustainable development.

Keywords:

• natural resources
• sustainable development
• resource scarcity
• policy
• research
• economics

Acknowledgement

Views expressed in this paper are those of the author, rather than those of NSW DPI or the NSW Government. Valuable comments from two anonymous reviewers and the journal editor are gratefully acknowledged.

Notes

1. User cost is defined as an additional cost of using the resource in terms of lost future opportunities as a result of its current use. Scarcity rent is the payment accruing to a resource owner when the user cost is positive.

2. This section mainly draws upon Tietenberg (1992).

3. Stumpage is the price an extractor pays to the owner of forest land for the privilege of cutting and taking the timber.