Definitions Classification of Resources L. No. 6

1. REE I Definitions Classification of Resources L. No. 6 Resources: Something that can be drawn upon for aid or take care of a need. Resources are means of accomplishing something and they imply strength. Type of Resources Natural resource Human resources Scientific and technical resources Institutional and organizational resources 

2. REE Classification of Resources Consumed by use Oil, Gas, Coal Non-renewable Theoretically recoverable All elemental minerals Stocks Recyclable Metallic minerals Natural Resources Critical zone Fish, Forests, Animals, Soils, Water in Aquifers Flow Renewable Non-critical zone Solar energy,Tides, Wind Waves, Water, Air

3. REE Key Points 1. NRs are defined by man, not by the nature.2. Phy./ Bio. substances will become Rs only when : They are scarce They have a demand Knowledge & skills to extract & use are available.3. "NRs" is a dynamic, time & space dependent. Defined by e economic & cultural conditions.4. Communication & integration of e world economy have narrowed e variation of resource availability.5. Technological progress converts previously unvalued phy. & bio. substances to resources.

4. REE How to actually asses scarcity in practice? Indicators and Properties: A. Foresight B. Comparability C. Computability • Physical Indicators • Traditional - Reserve to use ratio – static & exponential • Calculatedusing geologic and statistical methods • Satisfy B & C but not A. • Economic Indicators • Resource price; Criteria B & C are O.K but hardly A? • No use at all for CP, regulated markets, externalities. • Two situations • -Rising MC of extraction is one type of scarcity indicator. • MC is low but there is a big scarcity rent. • Scarcity Rent MUC = P – MC = Marginal Discovery Cost

5. Identified Undiscovered Demonstrated Inferred Hypothetical Speculative Measured Indicated Econom Reserved Subeco Para marginal Sub marginal A Categorization of Resources REE

6. REE THE CATEGORIES OF WILD RESOURCES • Extinct (EX) - A talon is EX when there is no reasonable doubt that its last individual has died. • Critically Endangered (CE) A taxon is CE when it is facing an extremely high risk of EX in the wild in the immediate future. • Endangered (EN) - A texon is EN when it is not CE but is facing a very high risk of EX in the near future. • Vulnerable (VU) A taxon is VU when it is not CE or EN but is facing a high risk of EX in e wild in the medium future. • Conservation Dependent (CD) Taxa that don’t currently qualify as CE, EN, or VU, may be classified as CD.

7. Wild Life Diversity REE Low Risk (LR) A taxon that don’t currently qualify as CE, EN, VU, CD, Data Deficient may be classified as LR. Data Deficient (DD) A taxon is DD when there is inadequate information to make a direct,or indirect assessment of its risks of EX. Endemic Species Those which occur in specified locality & nowhere else in world. Threatened Species Thos which are likely to become endangered within the foreseeable future. Not all or significant portion- ranges.

8. REE Sri Lanka’s Fauna and Flora • Sri Lanka’s fauna (43) and flora (455) account for a high degree of species richness & endemism. • Under Severe Threat due to: • Rapid depletion of forest cover; High population density; -Habitat degradation & Unplanned dev. activities. • Many threatened species are Data Deficient in Sri Lanka • Most tropical Fs are de jure SP, but de facto OA non exc Three Aspects of Resources Resource Types Physical Feature Resource Rights Use,Control, Transfer, Exclusion, Symbolic Resource Ownership Private,Common, OA., State, Public

9. Natural Resource as a Public Good REE Excludability Non - Excludable Excludable Rival Private Good Open Access Sustainable local agriculture International Fisheries Organic Agriculture Marketability Carbon sequestration Eco-tourism Rivalry Extraction through Ecosys. protection Flood control through eco sys protection Existence of spp. Ecosystem. Erosion cont. Ecosys protection Non - Pure Public Good Club Good rival Local Global Locality

10. REE Common Property Resources Problems Distinguish bet. OA and CP for appropriate policy. CPRs can be indivisible & non exclusive or non rival or un-depletable or in consumption within limits 1.Culture, tradition and political reasons 2. Basic phy. characteristics of the NR themselves Stable pattern of CPR use change due to: Population growth, tech. & rapid climatic change. The breakdown of CP Institutions results from lack of assurance, externality,competitive rush. Incentive to increase one’s input level beyond the limits that leads to loss of over all group welfare“T C” Common Pool R: Non exclusive but divisible

11. Price of BD (Rs. Per Unit) Market Demand P* MC MC Pa Pb DA DB 0 Qb QaQ* Qty of BD REE Public Goods PGs are indivisible,non-excludable & rival in consumptn. clean air, clean water, BD, scenic views etc Due to free riding the market will be under-provide PG. Once a PG is provided, due to uncertainty individuals have incentive to enjoy it without paying. Free Riding with a Public Good Vertical summation of Ind. D - due to simultaneous use Constant cost per unit NB to Society at Q* = Qb + Qa A over ride on B. Total Provision = Qa<Q* Difficulty in charging diff. WTPsPa > Pb

12. REE BD as a “Club Good” CGs are non rival in use, but excludable. Since they are excludable, there is some scope for private market. NRs, parks & reserves are often linked with eco-tourism. As long as CGs are excludable fees can be charged. Regulatory interventions by Govt. can play an imp. Role. BD as an OA & Pure PG – Res nullius PR • OA & Pure PGs display non excludability • Markets are more restricted in the provision of these Gs. • Markets can still be used to help in regulatory tools • to limit OA regimes: Individual Transferable Quotas • to limit the negative impacts of activities on ecosys. • Information asymmetries may be a bottleneck in the functioning of mkts. that promote NR conserva. & S use.