The Role of Natural Capital on the Pursuit and Implementation of Economic Development

Abstract

An increasing amount of research has been dedicated to studying various society-environment relations. Although much research exists that studies the impact of economic development on environmental degradation, there is a paucity of sociological literature that examines the impact that the natural environment has on community-level economic development activities. Using survey data collected from 101 communities in Oregon and Washington, the author examines the relationship of natural capital on the pursuit and implementation of two types of economic development: industrial recruitment and self-development. Results suggest that the pursuit and implementation of economic development are related to several components of natural capital. However, natural capital affects industrial recruitment and self-development in opposite ways, particularly when implementing these two strategies. Moreover, it shows that while the natural surroundings of communities affect the pursuit of economic development, the impact becomes more important for the implementation of economic development strategies, net of other social and demographic factors. These findings illustrate the need for researchers, policymakers, and community activists to heavily consider the role that the natural environment plays when looking at social phenomena such as economic development.