This assignment contemplates the discussion about the present conflict for the Arctic region, including the applicants’ claims for Arctic natural resources. The major focus of this work therefore is, as mentioned in the assignment’s subject, analysing the ‘battle for
natural resources’ as well as the impact for the involved economies.
During the investigation it was determined that experts of different scientific institutions do not come to the consensus about the available amount of raw materials, especially oil and gas, which are focused in this paper.
Due to the scarcity of depletable resources their importance increases and with it the run for the Arctic and its treasures. Although the amount of these resources in relation to the
known sources is assumed to be low, every new discovered deposit is of great importance for the potential owner and for the world economy.
As the Arctic is located in the high seas, there is currently no existing legislation for the case of claiming the present resources except the admiralty law. Generally, this is a unique case in world history. Among the applicants for the different regions of the
Arctic there are several conflicts about the exact borderlines.
Table of Contents
1 Introduction
1.1 Preface/Problem Description
1.2 Objectives
1.3 Scope and Structure of Work
2 As-Is Situation
2.1 Global Allocation of Resources
2.2 Scope: The Arctic Region
2.3 Economic Portrayal of the Arctic Region
2.4 Summary
3 Applicants for the Arctic Region and Resources
3.1 Preface
3.2 Legislation terms
3.3 Scope-Definition of Applicants
3.4 Economic Portrayal of Applicants
3.4.1 Norway
3.4.2 Russia
3.5 Summary
4 Impact on the Applicants’ Economy
4.1 Preface
4.2 Scenarios
4.2.1 Discovery of New Deposits
4.2.2 Price Formation of Depletable Natural Resources
4.2.3 Differential Rent Theory
4.2.4 Isoelastic Demand Function
4.3 Examples & Approaches
4.3.1 The Resource Oil
4.3.2 The Resource Gas
4.4 Impact on Relevant Economies
4.5 Summary
5 Results
5.1 Preface
5.2 Results from Investigation
5.3 Visualisation of Results
5.4 Summary
6 Conclusion
6.1 Summary
6.2 Recommendation
6.3 Future Research Direction
Objectives & Research Themes
This work examines the intensifying conflict over natural resources in the Arctic region, driven by climate change and the global scarcity of fossil fuels. It explores the legal and economic implications of territorial claims, focusing on the strategic interests and economic dependencies of Russia and Norway, and evaluates potential scenarios for future resource management and economic impact.
- Analysis of the global scarcity and allocation of non-renewable resources like oil and gas.
- Evaluation of the geopolitical and legal situation in the Arctic, specifically concerning the UNCLOS and territorial claims.
- Investigation into the economic impact of resource extraction on the involved nations, Norway and Russia.
- Assessment of the ecological and political challenges posed by melting Arctic ice and new maritime trade routes.
- Discussion of strategies to solve territorial disputes and ensure sustainable economic outcomes.
Auszug aus dem Buch
2.1 Global Allocation of Resources
Adam Smith, who lives from 1723 until 1790, is considered as one of the pioneers of the traditional economics and founder of the resource-allocation theory, an analysis of the resources being used and its effect on the productivity. In these times, the factors of productivity were defined as labor, land and capital. Nowadays, the factors of productivity need to be defined more differentiated. Labor means coordinated human acting and know-how. Capital is defined as the sum of all equipment such as machinery, building and infrastructure and land stands for natural resources. Natural resources are substances that exist naturally in the earth and were not made by but necessary or useful to human beings. From an economical and geographical view, natural resources can be separated in renewable and non-renewable resources. Renewable resources are those resources that can be brought back to the original state without human effort after being used.
Consequently, non-renewable natural resources cannot be brought back to the original state within a human-term time horizon. Natural gas and mineral oil are so called non-recyclable non-renewable resources as they will be destroyed by burning them in order to produce energy. Minerals and metals are recyclable non-renewable resources, but will become slightly useless due to a higher degree of pollution caused by the recycling process. Natural non-renewable resources are running out, but the world has an increasing demand of those resources as they are said to be mandatory to ensure the growing of developing and emerging markets. Thus, the battle for the worldwide natural resources is already in progress for years.
Summary of Chapters
1 Introduction: Provides the problem description, research objectives, and the scope of the study regarding the Arctic resource conflict.
2 As-Is Situation: Explores the global allocation of resources and the specific environmental and economic context of the Arctic region.
3 Applicants for the Arctic Region and Resources: Describes the legal framework, international institutions, and the specific conflicts between claimants like Norway and Russia.
4 Impact on the Applicants’ Economy: Analyzes economic scenarios, price formation, and the broader welfare impacts of resource discovery on national economies.
5 Results: Summarizes key investigation findings, visualizes resource extraction costs, and reviews the political and technical realities of Arctic exploitation.
6 Conclusion: Answers the core research questions and offers recommendations for future diplomatic and economic strategies in the Arctic.
Keywords
Arctic, Natural Resources, Mineral Oil, Natural Gas, Geopolitics, UNCLOS, Norway, Russia, Barents Sea, Climate Change, Peak Oil, Economic Growth, Resource Allocation, Sustainability, Territorial Conflict
Frequently Asked Questions
What is the fundamental topic of this paper?
The paper focuses on the increasing geopolitical and economic struggle over natural resource access in the Arctic region, particularly in the context of global scarcity and climate-induced accessibility.
What are the central thematic fields covered?
The study centers on international resource economics, maritime law, geopolitical strategies, and the economic dependencies of nations bordering the Arctic, specifically Russia and Norway.
What is the primary objective of the work?
The primary aim is to analyze how the conflict over Arctic natural resources affects the economies of the involved stakeholders and to provide potential diplomatic and economic approaches for resolution.
Which scientific method is applied?
The paper utilizes a qualitative analysis based on existing literature, statistical energy reports, and an examination of international legal frameworks like UNCLOS to evaluate economic impacts and potential scenarios.
What is addressed in the main body of the work?
The main body treats the global resource situation, the specific territorial disputes in the Barents Sea, the economic profiles of Norway and Russia, and theoretical frameworks like the Differential Rent Theory and the Hubbert Curve.
Which keywords best characterize this work?
Key terms include Arctic resources, geopolitical conflict, oil and gas, UNCLOS, economic dependence, and sustainable resource management.
How does the Dutch disease affect the findings for Norway?
The paper discusses the Dutch disease as a risk for resource-rich economies, noting that Norway must manage windfall profits to avoid neglecting other industrial sectors and becoming overly dependent on energy exports.
What is the role of the Lomonosov Ridge in Russia's claims?
Russia attempts to prove that its continental shelf connects to the Lomonosov Ridge, which would legally strengthen its territorial claims to the North Pole region under UNCLOS provisions.
- Citation du texte
- Silvio Wilde (Auteur), Daniel Franzen (Auteur), Thomas Kuhn (Auteur), Maxim Stührenberg (Auteur), 2010, The Battle for the Worldwide Natural Resources - International Strategies and their Impacts, Munich, GRIN Verlag, https://www.grin.com/document/187462
