ABSTRACT
Natural environments are gifts of nature, dependent upon accidents of biological evolution, geomorphology, and ecological succession. The primary uses for the services of natural environments distinguished are those of preservation and development. A natural environment is usually composed of complex ecosystems in which there has been minimal disturbance by man. Technical innovation may not have the same effect on the different uses to which an environmental resource may be put, and there is reason to suspect that differential rates of technological change will be experienced by different sectors. Opportunity costs reflect both the trade-off implied by the nature of the supply conditions and that from the demand side. There is an asymmetry in the implications of technological change for the value of environmental resources when their services are used for mutually exclusive purposes. The chapter also presents an overview of the key concepts discussed in this book.
