Introduction According to Paltseva and Roine (para. 1), natural resources contribute to spending, labor income, and jobs. These resources support numerous jobs and offer employment to the residents of a country. Natural resources and the educated workforce are interconnected and it is of great importance for the state to generate a quality labor force via the attainment of higher education. Before the globalization processes started, it was prudent to assume that natural and environmental resources had no competition because resources were in abundance and the economy was using them in an unlimited way. Wealth, jobs, and prosperity were got from these resources via the extractive industries. In turn, the industries converted the resources into commodities. A healthy economy, and a healthy environment could be achieved, but not at the same time. Economic competition was not rife and most of the resources in the environment were free. However, the current scenario predetermines that there is the increased competition for the natural resources that continues to grow. These resources are no longer abundant with the increase in human population that is depleting them. This essay will highlight the economic effects of the environment and the natural resources. The Effect of Resources on the Economy According to Poser (20), natural resources can no longer satisfy the human demands that are placed on them. Therefore, when the resources are allocated to a particular use, other application methods compete with the primary one. It is worth noting that such a trade-off means that the decisions to allocate the resources, like development and protection, generate costs and benefits. They have ramifications for the present and future inhabitants of the nearby communities and the entire regions. In this paper, it is clear that a natural resource cannot satisfy the demand for the service and goods that it provides. Subsequently, to understand the economic ramifications of the development or protection of the economic resources, one should understand the extent to which it will affect the aforementioned competition. One should keep in mind that the economic value of the natural resources stems from their commercial demands, which entails their development or extraction. The term extraction refers to activities, industries, and the use of resources associated with the production of timber, grazing, mining, and various activities that electrically, physically, or chemically remove several elements from their sources. The term development can be regarded as occupation of a site by structures set up by human beings. This occurs mostly in the event of urbanization. It also entails intense activities by the human beings such as conversion of open land into commercial and housing buildings, the change of the floral community in the forest, the development of recreational sites for the developing industries, and other aspects. The commercial demand for the resources in the environment comes from the public and private enterprises. This is defined broadly to include the groups that sponsor the development and extractive activities. There are two types of demand for the natural resources. First, the