The Concept of Natural Resource Economics

Abstract

Natural resources play a crucial role in economic activities as they are utilized to meet various human needs and support production processes. However, natural resources are finite, and their utilization must therefore be managed responsibly to prevent resource scarcity and environmental degradation. This study aims to examine the concept of natural resource economics, its role in economic activities, the issue of resource scarcity, its relationship with economic growth, and the environmental implications of natural resource utilization in the context of sustainable development. This study employs a literature review method with a descriptive qualitative approach. Data were obtained from various sources, including scientific journals, books, scholarly articles, and publications related to natural resource economics. The findings indicate that natural resources play a significant role in supporting production activities, increasing household incomes, creating employment opportunities, and promoting economic growth. However, excessive exploitation of natural resources can lead to resource depletion, pollution, ecosystem degradation, and declining environmental quality. Therefore, natural resource management should strike a balance among economic, social, and environmental interests. Sustainable management is expected to generate economic benefits in the present while ensuring the availability of natural resources for future generations.