Proper calculation of income from depletable natural resources

Serafy, Salah El

doi:10.4337/9781781007365.00018

Cited by 4 publications

(6 citation statements)

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“…El Serafy 24 presented user costs as the investment needed to sustain a constant income after a mine is closed. The “user cost” refers to a cost that users would incur due to the use of capital assets, and in this study, the “users” are future miners of abiotic resources.…”

Section: Methodsmentioning

confidence: 99%

“…The user cost was employed to calculate the characterization factors (CFs) of abiotic resource use for an end point in LIME2 on a global scale and then updated in LIME3 to provide country-specific CFs, which are LCIA methods developed in Japan. , It is based on El Serafy’s user cost concept, which proposes setting aside a portion of the earnings from the sale of resources for capital investment to generate a perpetual stream of income . The user cost concept assesses the external cost of resource use from the perspective of future miners.…”

Section: Introductionmentioning

confidence: 99%

“…21 , 23 It is based on El Serafy’s user cost concept, which proposes setting aside a portion of the earnings from the sale of resources for capital investment to generate a perpetual stream of income. 24 The user cost concept assesses the external cost of resource use from the perspective of future miners. In the “task force mineral resources” of the “global guidance for LCIA indicators and methods” project led by the Life Cycle Initiative under the auspices of UN Environment, the user cost model adopted in LIME2 is among the recommended methods for evaluating the potential impacts of mineral resource use in LCIA, which addresses the question “how can I quantify the relative (economic) externalities of mineral resource use?” 9 While some characterization models, such as ADP, surplus ore potential, surplus cost potential, and CEENE, focus on global-scale impacts of abiotic resource use, the user cost model addresses concerns related to mining by the current generation leading to future resource scarcity at specific mining sites as well as global-scale.…”

Section: Introductionmentioning

confidence: 99%

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Country-Specific External Costs of Abiotic Resource Use Based on User Cost Model in Life Cycle Impact Assessment

Yokoi,

Motoshita,

Matsuda

et al. 2024

Environ. Sci. Technol.

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Abiotic resources are indispensable in society, but there are concerns regarding their depletion, scarcity, and increasing prices, resulting in potential economic damage in the future. To address these concerns, it is effective to consider the external costs of resource use. Although resource availability is different among mining sites, and local conditions are relevant in assessing resource scarcity, previous studies have assessed external costs and potential impacts of abiotic resource use globally. This study provides country-specific characterization factors (CFs) of abiotic resource use in life cycle impact assessment based on the user cost model, which represents the external costs of abiotic resource use to reflect country-specific resource scarcity. We demonstrate considerable variations in the CFs depending on the mining country, suggesting that the choice of mining country can affect external costs. The global external cost of abiotic resource use in 2020 was estimated at 1.9 trillion $, with a major contribution from the extraction of fossil fuels in the United States. Historical trends of the CFs and relevant parameters showed temporal fluctuations, emphasizing the importance of regularly updating the data underlying the calculation of the CFs. Country-level assessments of the external costs of resource use can contribute to discussions on the responsibilities of consuming countries by incorporating material footprint studies.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Country-Specific External Costs of Abiotic Resource Use Based on User Cost Model in Life Cycle Impact Assessment

Yokoi,

Motoshita,

Matsuda

et al. 2024

Environ. Sci. Technol.

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“…3.1.1. The Folk Theorem: Substituting Renewables for Depleted Exhaustibles to Achieve Sustainability It has long been conjectured that sustainability can be achieved if renewable resources can be sustained and their production expanded enough to compensate for depletion of exhaustibles [20]. Despite continuing difficulties in formalizing this "folk theorem" [21], the message that sustainability can be achieved if enough renewable resources are substituted for depleted exhaustibles has continuing resonance.…”

Section: Strong Sustainability For Resource-dependent Human Societiesmentioning

confidence: 99%

How Strong Sustainability Became Safety

Randall

2022

Sustainability

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The core commitment of strong sustainability, SS, is that nature really is different: there are strict limits to the substitutability of natural and other kinds of capital. Initially, the threat to sustainability was perceived as human greed and impatience, and the goal of SS to address resource scarcity was to sustain resource stocks, the flow of environmental services, and/or the harvest for human benefit. For landscapes and ecosystems, the SS goal was preservation, often in a gestalt framing: preserved or not. Two developments beginning around the mid-20th century—increasing awareness of the variability of natural systems, and the revolutionary changes in thinking motivated by the study of complex dynamic systems, CDS—re-oriented SS toward Safety, i.e., minimizing exposure to risk defined as threat of harm. Around 2010, the sustainability agenda for CDS shifted from identifying early warning indicators enabling timely interventions to forestall adverse regime change to promoting resilience by expanding scale and encouraging patchwork patterns of systems in various stages of their adaptive cycles. Nevertheless, the need for natural resources to substitute for depleted exhaustibles suggests a continuing role for commercial agriculture, plantation forestry, and managed fisheries. I conclude with a paradox still to be resolved: the need for continued and increased production from renewable resources to replace depleted exhaustibles suggests SS-motivated management practices that seem obsolete from a CDS perspective.

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“…As recovery is not possible in the case of nonrenewables, the practice of quasi-sustainable consumption is encouraged, maintaining that the rate of creation of renewable substitutes compensates for the extraction rate (Bastianoni et al, 2009). This concept can be understood in the strict sense, which involves investing a portion of the profits generated by the non-renewable resource in renewable substitutes that fulfill the same needs as the material that is becoming increasingly more scarce, with the intention that the renewable material will be in conditions to generate an equal profit when the non-renewable has finished its life cycle, (El Serafy, 1989). On the other hand, the concept can be understood in the broader sense, whereby investments are made in any other initiative capable of guaranteeing the sustainability of an area's income (Daly, 1991;Basu and Pegg, 2020).…”

Section: Introductionmentioning

confidence: 99%