The non-extractive economic value of land is its

monetary value In economics, economic value is a measure of the benefit provided by a good or service to an economic agent. It is generally measured through units of currency, and the interpretation is therefore "what is the maximum amount of money a specif ...

the land creates without extracting

resources Resource refers to all the materials available in our environment which are technologically accessible, economically feasible and culturally sustainable and help us to satisfy our needs and wants. Resources can broadly be classified upon their a ...

or artificially developing it. The economic value usually comes in the form of

ecotourism Ecotourism is a form of tourism involving responsible travel (using sustainable transport) to natural areas, conserving the environment, and improving the well-being of the local people. Its purpose may be to educate the traveler, to provide funds ...

: it is estimated that hundreds of billions of dollars are generated through visitation to

protected area Protected areas or conservation areas are locations which receive protection because of their recognized natural, ecological or cultural values. There are several kinds of protected areas, which vary by level of protection depending on the ena ...

s, although little profit is reinvested in the preservation of said areas.

Examples

Marine tourism

In 2001, Murray Rudd studied the economic impact of

spiny lobster Spiny lobsters, also known as langustas, langouste, or rock lobsters, are a family (Palinuridae) of about 60 species of achelate crustaceans, in the Decapoda Reptantia. Spiny lobsters are also, especially in Australia, New Zealand, Ireland, So ...

s – or lack thereof – on

scuba diving Scuba diving is a mode of underwater diving whereby divers use breathing equipment that is completely independent of a surface air supply. The name "scuba", an acronym for "Self-Contained Underwater Breathing Apparatus", was coined by Chris ...

. Rudd concludes that "there is justification for placing some positive non-extractive economic value on spiny lobsters", as scuba divers were inclined to pay more for marine tourism if given the guarantee that such lobsters would be present. Because of this, Rudd defends the economic viability of

marine protected area Marine protected areas (MPA) are protected areas of seas, oceans, estuaries or in the US, the Great Lakes. These marine areas can come in many forms ranging from wildlife refuges to research facilities. MPAs restrict human activity for a conserv ...

s, especially on the

Turks and Caicos Islands The Turks and Caicos Islands (abbreviated TCI; and ) are a British Overseas Territory consisting of the larger Caicos Islands and smaller Turks Islands, two groups of tropical islands in the Lucayan Archipelago of the Atlantic Ocean and n ...

. In this situation, the sheer presence of spiny lobsters has economic value, without the need for any human extraction or artificial development. A similar case can be perceived, for example, with the

Great Barrier Reef The Great Barrier Reef is the world's largest coral reef system composed of over 2,900 individual reefs and 900 islands stretching for over over an area of approximately . The reef is located in the Coral Sea, off the coast of Queensland, ...

: profit can be made from it simply existing, and as such, there is intrinsic, long-lasting economic value in preserving the reef from dangers such as

coral bleaching Coral bleaching is the process when corals become white due to various stressors, such as changes in temperature, light, or nutrients. Bleaching occurs when coral polyps expel the zooxanthellae (dinoflagellates that are commonly referred to as alg ...

Water

Water can also have non-extractive economic value. In their 2002 book, Steven Renzetti considers more indirect impacts of the presence of natural water. For example, Renzetti states that house prices are usually higher near streams or

lakes A lake is an area filled with water, localized in a basin, surrounded by land, and distinct from any river or other outlet that serves to feed or drain the lake. Lakes lie on land and are not part of the ocean, although, like the much larger ...

– that is to say, properties near such bodies of water are considered more valuable. Renzetti also mentions the economic value of recreational uses for water, such as

recreational fishing Recreational fishing, also called sport fishing or game fishing, is fishing for leisure, exercise or competition. It can be contrasted with commercial fishing, which is professional fishing for profit; or subsistence fishing, which is fishing ...

and visits to

beaches A beach is a landform alongside a body of water which consists of loose particles. The particles composing a beach are typically made from rock, such as sand, gravel, shingle, pebbles, etc., or biological sources, such as mollusc shells ...

and lakes. Further, Renzetti also considers a broader definition for non-extractive economic value, including

hydropower Hydropower (from el, ὕδωρ, "water"), also known as water power, is the use of falling or fast-running water to Electricity generation, produce electricity or to power machines. This is achieved by energy transformation, converting the Pot ...

in their list of such uses for water. Although it is definitely non-extractive and

sustainable Specific definitions of sustainability are difficult to agree on and have varied in the literature and over time. The concept of sustainability can be used to guide decisions at the global, national, and individual levels (e.g. sustainable livin ...

, it does require artificial development, and can have negative environmental impacts – albeit lower than those of comparable

fossil fuel A fossil fuel is a hydrocarbon-containing material formed naturally in the Earth's crust from the remains of dead plants and animals that is extracted and burned as a fuel. The main fossil fuels are coal, oil, and natural gas. Fossil fuels m ...

energy sources.

References

Bibliography

* * Real estate terminology {{Economics-stub

Examples

Marine tourism

Water

See also

References

Bibliography