| This thesis follows the development of natural capital economics and the impact that the valuation of ecosystem services might have on the value of limited natural resources in the Prince Edward Island economy. Natural capital economic systems are organized to accept laws of ecological science as determinates of outcomes. The application of ecological economic theory to island economic development imposes limits on the island economy; these limits are supported by physical island boundaries in geography. Financial values in natural capital economic theory represent a multidimensional concept which reflects various scientific disciplines and social groups when defining nature by built, natural, social and human capital.;A case study of PEI environmental indicators illustrates a declining stock of natural capital assets. Traditional economic indicators on Prince Edward Island reveal a lagging economy unable to reverse the long term decline in natural capital. Research indicates that these trends could be reversed by integrating ecological economics into island development and governance plans. Ecological economic theory, notwithstanding its early stages of development, provides guidance for islands to invest in income tax reform, natural area land assembly, climate change adaptation, and import substitution. |
