Flows Of Natural Resources

Categories: Economics,

All natural resources originate in the environmental sphere. Some remain there and so do not enter the physical flow accounts even though they should be recorded in stock levels. Those which are drawn into the economy become immediately transformed into products; that is, they exist within the context of a market which puts a monetary value on them. This is also the case in principle for resources harvested for own account use, for example fuel wood collected by households, the extraction of construction materials and water, even though in practice valuation may be difficult.