Geological Capital
Geological capital, a term coined in the early 1990s, refers to the use of geological phenomena to generate economic wealth. The concept evolved from the recognition that in addition to the traditional economic factors such as labour, capital and land, the physical environment of the earth was also a valuable asset that should not be overlooked in the formulation of economic goals and strategies. Geological capital has proven to be an invaluable source of information and knowledge for interpreting the environment and its potential for increasing social and economic wellbeing.
Geological capital comprises physical features of the earth such as its landforms, soils and topography, as well as its biophysical, geothermal and hydrothermal characteristics. Geological data is used to inform decisions on land use, water use, mineral and petroleum resource development, and to assist in the containment of potential hazardous materials and processes. Additionally, geological capital is used to understand the effects of natural phenomena such as erosion, seismic activity, floods and landslides, and to inform risk management strategies.
Since its introduction, the scope of geological capital has expanded to include the recognition that geological resources can also be a valuable source of technology and expertise, enabling economic development through the use of geological knowledge in forecasting, decision-making and planning. Geological capital has become a recognized component of the global economy, leveraging high-value resources such as oil and gas and minerals, as well as the development of alternative energy sources and advanced technologies.
For example, Finland, a small Nordic country, recently implemented an innovative approach to economic development that drew upon its geological resources. Through a combination of geotechnical engineering and remote sensing, the Finnish government has been able to identify and exploit valuable metallic deposits and energy sources that would not have been possible without geotechnological advances. In addition to boosting the national economy, the use of geological capital has allowed Finland to diversify its economy and provide new sources of employment.
Geological capital is also a powerful tool for assessing, managing and improving the environment. Geological data can be used to determine the likelihood of hazardous events such as earthquakes or landslides, which can be mitigated through the implementation of corrective measures. Geological capital is also useful in understanding the dynamics of underground aquifers and subsurface water, as well as assessing the potential impacts of human activities on the environment.
Geological capital continues to contribute to economic and environmental sustainability, providing valuable insights into the Earth’s diverse geological resources. The increasing importance of geological capital has encouraged the development of new geological technologies and the emergence of geological services, unlocking further opportunities for economic development and environmental protection. Geological capital provides a foundation for sustainable economic development, providing the insights needed to harness the finite but valuable resources of the Earth.
