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Natural capital

Natural capital, also known as environmental assets, refers to stocks of natural features that provide flows of benefits through ecosystem services to humans. It has been suggested that natural capital accounts can be used to assess the state and economic value of nature (ecosystem services) in a manner comparable to assessing economic growth using GDP.

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Sun sets over field in Australia. Credit: Gareth Davies via Pexels
Journal articles
Natural capital enhances farm production, profitability and financial resilience: findings from Australia
Using natural capital data from 114 farms in Australia via satellite imagery and on-ground vegetation surveys, alongside production and financial data collected, this study found high-performing livestock businesses benefit from high levels of natural capital. High levels of specific types of natural capital were associated with increased production efficiency of up to 3%, improved livestock gross margin, higher farm earnings, and higher levels of climate resilience.
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