The economic valuation of ecosystem services in cities often relies on the concept of willingness to pay. Such reliance invariably leads to the adoption of methods that have several inherent limitations. The object of this paper is to present both a conceptual and methodological framework within...

The recognition of two important concepts in science, namely the assimilative capacity of nature and the entropy of law of thermodynamics enables the formulation of an alternative framework for factor-utilization in economics. This framework, which includes environmental capital (KN) as a...

The extraction of energy resources and the preservation of sensitive in-situ environmental assets are invariably mutually exclusive alternatives. The opportunity cost value of preserving the environmental assets can be assessed by recourse to resource rent taxes, and threshold values. The case...

The aim of this paper is to demonstrate the significant differences that would emerge in policy formulation, when environmental capital is explicitly accounted for in macroeconomic analyses. These differences are illustrated with reference to the Australian economy. The main analytic frameworks...

The aim of this paper is to demonstrate the significant differences that would emerge in policy formulation, when environmental capital (KN) is explicitly accounted for in macroeconomic analyses. These differences are illustrated with reference to two selected Organisation for Economic...

This paper deals with foreign direct investments (FDI) in Australian mining. These investments do invariably impact on sensitive environmental resources that warrant preservation. Inadequate legal safeguards for preserving such resources stem from the lack of recognition offered to the...

This paper presents a simple method for estimating the size of environmental capital (KN) assets that are otherwise mistaken as infinite. An illustration is provided for Australia's air shed. The method draws on the perpetual inventory method (PIM) used in macroeconomics for measuring the size...

Economies heavily dependent on mineral resource extraction, need to evaluate the merits of investing the rents earned from such extraction in other income generating activities to sustain the flow of income and consumption. In this regard, it is important to estimate and assess the potential...

Adding sustainability to the conditions of perfect competition (PC) results in a meaningful benchmark, especially in the context of pursuing sustainability as a policy goal. On this basis, some standard explanations involving the comparisons with imperfect competition can be questioned. But,...

The main argument in the paper is that the bench mark of perfect competition is grossly inadequate and needs to be modified to recognize the sustainability of nature. Such recognition will lead to significant shifts of axiomatic premises in economics. The revised axioms could comply with...