Chapter 2 - Resources and Economic Welfare

Abstract

This chapter starts with an overview of resources that are important for human societies. It covers natural resources, such as land and waterways, mineral resources including fossil energy forms, and biological resources, such as crops, livestock, fish, and trees, but also flow resources associated with solar radiation intercepted by the Earth, including wind, hydro, and direct solar energy, as well as resources built or manufactured by human societies. The chapter continues by describing the current economic setup based on the paradigm of liberal markets and how it deals with the issues of resource depletion and with social and environmental impacts of the economic activity. The chapter ends with a discussion on the social organization in terms of governance, and the underlying principles of human rights that appear in national constitutions. Particular emphasis is placed on the welfare economic model and the definition of welfare because it will be used in the following chapters.