Sustainability refers to not reducing the long-run productivity of natural resource asset base.
In relation to natural resources, sustainability
a.is incompatible with the use of nonrenewable natural resources
b.requires increased use of renewable resources
c.requires that nonrenewable resource use contribute to economic growth of a country
d.requires that nonrenewable resource use contribute to economic development of a country
Examples of environmental assets important to economic development include
d.all of the above
High rates of discount reduce the weight placed by people today on long run environmental damage.
Environmental valuation methods presented in Chapter 7 are not useful in a developing country context.
Ans 1. True.
Productivity means the ability to produce maximum with the given output.
Sustainability means not developing at the heavy cost of depleting natural resources. Here the question uses the term natural resource asset base. Natural resources such as oil, timber, and other resources are very important for any production activity of the companies and they even add them in their accounting records. It's a fact that as we increase the intensity of the natural resources, our output increases but this also heavily exhaust these resources. So these assets should be sustained in a way that will not reduce their productivity and also not deplete them.
Ans 2. Option b is correct. Requires to increase the use of renewable natural resources.
The non-renewable resources are depleting and now economies around the world are looking for other sources. That's why now renewable resources are being experimented on for better solutions. One more thing to note here is that non-renewable resources such as coal and fossil pollute the environment with their intensive use. Whereas, renewable resources such as sunlight and wind are very environment-friendly so that's why also we should increase the use of renewable natural resources for economic growth and development and maintain high sustainability.
Ans 3. Option D is correct. All of the above.
All of the above environmental assets are very important for economic development. For example, after the optimal utilization of these resources, a nation can have a rich and flourishing agriculture sector which positively impacts economic development.
Ans 4. True.
The discount rate refers to the rate that derives present economic value from the future economic value.
It has been noted by the environmental activists that high discount rates negatively impact environmental quality and natural resource sustainability. The people focus just on the present value and want to provide their future generation with more assets and wealth that's why they invest today extravagantly. But they do not take into account future damages. This shows how they have placed less weight on future consequences and environmental issues.
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