ABSTRACT
The study of natural resources involves theories and concepts that are continually evolving with the passage of time and with improved understanding of the natural environment. Natural resources are generally grouped into two major categories: renewable and non-renewable. The key issue is to identify the time path of the rate of withdrawal of renewable and non-renewable resources from the natural environment with an objective to maximize the total economic value of the resources under consideration. In economics the study of natural resources is subdivided into two major subfields: environmental economics and resource economics. Environmental economics seeks to assess the damage inflicted on the natural environment when it is used for the disposal of waste. On the other hand, in resource economics the focus is on determining the rate of the extraction of non-renewable resources and the harvest of renewable resources over time.
