Thursday, August 26, 2010

Natural Income versus Natural Capital

A major shift towards a sustainable future has to concern our use of natural resources. We need to start living on "natural income" rather than "natural capital".

Natural capital consists of the accumulated riches of the earth, used and discarded, as in burning of fossil fuels. When such capital is exhausted, the economic system based on it goes bankrupt - it's unsustainable.

Natural income, on the other hand, embraces all natural resources that can be renewed, backfilled, or recycled. Such use of resources can be prolonged indefinitely. An economy based on Natural Income is sustainable.

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Inspiration and extracts taken from Ervin Laszlo: WorldShift 2012

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