Question

Is Air a scarce resource ?

Answer 1

Not really. It's true that there is a finite amount of air, but that finite amount is so much greater than the even aggregated need, that air is referred to as a free resource. This has, of course, important implications: firstly, the fact that it isn't scarce means that it faces the same problem that many other non-scarce (non-excludable and non-rivalrous) resource face: an inability to be accurately priced in the market.

Answer 2

My doubt arose because of this passage from Principles of Microeconomics "The test of whether air is scarce is whether it has alternative uses. What uses can we make of the air? We breathe it. We pollute it when we drive our cars, heat our houses, or operate our factories. In effect, one use of the air is as a garbage dump. We certainly need the air to breathe. But just as certainly, we choose to dump garbage in it. Those two uses are clearly alternatives to each other. The more garbage we dump in the air, the less desirable—and healthy—it will be to breathe. If we decide we want to breathe cleaner air, we must limit the activities that generate pollution. Air is a scarce good because it has alternative uses."

Answer 3

True, then we need to a further distinction between the kinds of goods. In modern micro (presumably) goods are classified along two axises - rivalrous and excludable. Rivalrous means that consumption by one individual prevents consumption by others; and excludable means that people cannot access it without paying.

hence, you get four basic kind of good: you have your old fashion scarce goods as rivalrous and excludable/non excludable. Take your computer and take a piece of common land: the difference is that since you can price a computer, (nonrivalrous & nonexcludable) you can ensure some market equilibrium. You can't price a nonexcludable good (commons, rivalrous and nonexcludable).

There is a debate, i guess, where air ends up. Air in most areas in advanced economies is likely to be a public good (as there are stringent measures against negative externalities, making it effectively nonrivalrous). In emerging economies, like my country, or China, air public good - it is still rivalrous.

To sum: if you need a single answer, go with commons. (r, and n.e.)

Answer 4

Also, caveat: most good are nonrivalrous up to a point.

Answer 5

No. I think you're approaching it in a really complicated manner. I totally understand where you're coming from and what the others are trying to say and yes, a technical argument can be made but you can do that for pretty much everything, you know?

Answer 6

Air consists of inputs which can be defined in greater detail and qualitatively evaluated for various purposes of marginal utility. Air can be purified artificially or organically through natural processes including photosynthesis. An interesting consideration might be attempting to determine a fair market value for air?

Answer 7

The air is a scare resource because governments and individuals have to make trade-offs regularly in their policy making. For instance, if a government decides to ease the regulations on carbon emissions to attract more investors and consumers, therefore, the governmnent has traded-off for more polluted air in return with more tax revenues from those existing and new businesses over clean air policy. As a result, the government may have attracted new businesses and kept the existing ones due to ease on regulation.

Answer 8

At first we have to mind that air is a natural resource. If it becomes scarce then it would be impossible for us to live. But it is true that now-a-days due to heavy pollution the fresh air ( especially pure oxygen) or air with out pollutants becomes scarce day by day.

Answer 9

Yes it is............

Answer 10

air is not a scarce resource bt 'clean air' certainly is .........