When additional waste is added to aquatic ecosystems, the process of nutrient cycling reduces the amount of dissolved oxygen in the water, thus reducing the amount of oxygen available for other organisms in the water. In addition, the nutrients that are released can lead to further problems such as algae blooms and lake eutrophication. In general, water fits the definition of a renewable resource. However, in some cases, such as certain underground aquifers, water can be viewed as an exhaustible resource since the recharge rate is so slow. A. Water as an input to production and consumption activities 1.
Water is essential to all life processes and most economic processes.
B. Water as a resource flow 1. In many cases water can be viewed as a resource flow in that the stock of available water is always being replenished. However, this does not mean that demand cannot exceed supply. Even when water is viewed as a resource flow it must be priced to reflect its relative scarcity and ensure that each unit of water goes to its most highly valued use. It is frequently the case that water is priced below its opportunity cost.