Resource Abundance

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The paradigm of resource abundance that underpins most established economic models, in which natural resources are considered virtually limitless, as is the ability of natural systems to absorb anthropogenic impacts, so environmental costs are considered external to and hence excluded from these models.

Similarly, financial theory based on economic models that are premised upon resource abundance does not account value to natural resources beyond their near-term cash flows. While still in widespread use, and the most common basis for policy decisions, such models are not viable in a world where resource abundance is not real.

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Resource abundance: A curse or blessing?