Chapter 3: Chapter 3: Resource Production Resource Production

and and ConsumptionConsumption

Population–Resource RelationshipsPopulation–Resource Relationships

Appreciate the relationship between population and the Appreciate the relationship between population and the resource base (carrying capacity) in a natural environment, resource base (carrying capacity) in a natural environment, and describe and explain the way this relationship differs and describe and explain the way this relationship differs between human populations and their resource bases.between human populations and their resource bases.

This should be done by examining the theories of Malthus and This should be done by examining the theories of Malthus and Boserup, the views of neo-Malthusians (Club of Rome, Ehrlich) Boserup, the views of neo-Malthusians (Club of Rome, Ehrlich) and contrary views, and population–resource regional and contrary views, and population–resource regional classifications.classifications.

ResourceResource

Something that is useful to humans.Something that is useful to humans.

A resource is dependent on technology A resource is dependent on technology as well as culture. as well as culture.

Natural resourceNatural resource

Anything in the biophysical environment Anything in the biophysical environment that can be used by people. that can be used by people.

Renewable resourcesRenewable resources

Those materials that can be regenerated Those materials that can be regenerated in nature faster than they are being in nature faster than they are being exploited by a society.exploited by a society.

Non-renewable Non-renewable resourcesresources

Material generated so slowly in nature Material generated so slowly in nature that for all practical purposes it exists in that for all practical purposes it exists in a finite quantity.a finite quantity.

Will resources run out?Will resources run out?

TheoristsTheorists

                              

     

                             

      

                               

    

Thomas Malthus Paul Ehrlich The Club of Rome

versus 

                                                                       

Ester Boserup Julian Simon

Demographer Demographer ThomasThomas MalthusMalthus argued that the earth argued that the earth could only support a could only support a finite population size finite population size because food because food supplies are limited. supplies are limited.

Biology professor Biology professor Paul EhrlichPaul Ehrlich is is the modern version of Thomas the modern version of Thomas Malthus — the most visible and Malthus — the most visible and persistent predictor of mass persistent predictor of mass famine and economic famine and economic catastrophe. Ehrlich went way catastrophe. Ehrlich went way beyond this and predicted beyond this and predicted famine and disaster on a scale famine and disaster on a scale unprecedented in world history. unprecedented in world history.

Not only was the world headed Not only was the world headed for catastrophe, but there was for catastrophe, but there was little that could be done to avoid little that could be done to avoid it.it.

Club of RomeClub of Rome If the world’s consumption If the world’s consumption

patterns and population patterns and population growth continued at the growth continued at the same high rates of the time, same high rates of the time, the earth would strike its the earth would strike its limits within a century. The limits within a century. The message was this outcome message was this outcome was not inevitable. People was not inevitable. People could change their policies could change their policies – and the sooner the better. – and the sooner the better.

It can be difficult to understand why It can be difficult to understand why MalthusMalthus’ and ’ and EhrlichEhrlich’s arguments that ’s arguments that population growth will reduce resources population growth will reduce resources seem to be incorrect. seem to be incorrect.

Julian SimonJulian Simon argued argued that the true measure that the true measure of scarcity is price.of scarcity is price.

It is true that in the short run, population It is true that in the short run, population increases will drive up the demand for increases will drive up the demand for natural resources and therefore their natural resources and therefore their prices.prices.

However, when this happens, the high However, when this happens, the high prices prompt entrepreneurs and prices prompt entrepreneurs and innovators to find new resources, or new innovators to find new resources, or new ways to getting existing resources more ways to getting existing resources more cheaply. cheaply.

ivory ivory celluloid (prototype of plastic) celluloid (prototype of plastic)

A combination of A combination of new discoveriesnew discoveries, , recyclingrecycling, , new technologynew technology that allows that allows less concentrated deposits to be used less concentrated deposits to be used and previously inaccessible deposits to and previously inaccessible deposits to be mined has meant that as resources be mined has meant that as resources have been used, the estimates of known have been used, the estimates of known reserves for many natural resources reserves for many natural resources have been have been revised upwardsrevised upwards..

Long-term studies show that the prices of Long-term studies show that the prices of most natural resources have declined most natural resources have declined over time, indicating greater abundance over time, indicating greater abundance rather than scarcity. rather than scarcity.

Hence, according to Hence, according to economists such as economists such as Julian SimonJulian Simon, non-, non-renewable resources, renewable resources, such as gold, are such as gold, are actually becoming actually becoming moremore abundant as time goes abundant as time goes on and as population on and as population grows. grows.

Economist Economist Ester BoserupEster Boserup's most notable work is 's most notable work is The The Conditions of Agricultural Growth: The Economics of Conditions of Agricultural Growth: The Economics of Agrarian Change under Population PressureAgrarian Change under Population Pressure. .

In doing so, she upended the assumption In doing so, she upended the assumption dating back to Malthus’s time (and still helddating back to Malthus’s time (and still held in many quarters) that agricultural methods in many quarters) that agricultural methods determine population (via food supply). determine population (via food supply).

Instead, she shows that Instead, she shows that population determines agricultural population determines agricultural methodsmethods. A major point of her book is that "necessity is the . A major point of her book is that "necessity is the mother of invention".mother of invention".