7.1.3—Natural income

Syllabus
First assessment 2026
Objective
7.1.3
Level
HL

Natural Income Is the Flow

Natural income is the flow of goods and services produced by natural capital without depleting the supporting stock.

Income type Examples Supporting stock/process
Goods fish, timber reproducing population or regenerating forest
Services climate regulation, flood prevention functioning atmosphere, vegetation, soil and wetland processes

A forest can yield timber and also regulate water and climate; harvesting that damages the stock can reduce both market goods and non-market services.

Measure the flow per unit time and verify that the natural-capital stock and process remain functional.

A large stock does not justify any extraction rate, and services are income even when they have no market price.