Biodiversity conservation, loss of natural capital and interest rates

Tisdell, Clem (2011) Biodiversity conservation, loss of natural capital and interest rates. Ecological Economics, 70 12: 2511-2515. doi:10.1016/j.ecolecon.2011.08.015


Author Tisdell, Clem
Title Biodiversity conservation, loss of natural capital and interest rates
Journal name Ecological Economics   Check publisher's open access policy
ISSN 0921-8009
1873-6106
Publication date 2011-10
Sub-type Article (original research)
DOI 10.1016/j.ecolecon.2011.08.015
Volume 70
Issue 12
Start page 2511
End page 2515
Total pages 5
Place of publication Amsterdam, Netherlands
Publisher Elsevier
Collection year 2012
Language eng
Abstract It is argued that there is neither regular relationship between changes in the level of the market rate of interest and variations in the rate of biodiversity loss nor does such a regular relationship occur between alterations in the market rate of interest and changes in the rate of natural resource extraction. However, some texts suggest otherwise. Microeconomic examples are given in which a rise in the market rate of interest results in increased biodiversity loss and others in which it does not. It is also posited that the rate of biodiversity loss (as well as the rate of natural resource extraction) tends to rise with the level of aggregate investment and aggregate economic activity. It is demonstrated, using macroeconomic models, that the market rate of interest can increase or decrease with a rise in aggregate investment and also with an increase in the level of aggregate economic activity. Therefore, changes in biodiversity loss (and in the rate of natural resource extraction) are independent of variations in the market rate of interest in macroeconomic models.
Keyword Biodiversity loss
Natural capital
Natural resource depletion
Sustainable development
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2012 Collection
School of Economics Publications
 
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