Resource or Asset – What’s the difference?

A resource is usually seen as something that is used for the benefit of humans. We find it, take it and use it. It is often extractive. Resources are often categorized into renewable and non-renewable. For example, mining is non-renewable because there is a finite amount of minerals on the planet. On the other hand, a renewable resource is something that continues to renew itself – obviously this is from some biological process, such as trees. The sun is actually burning out but on a timeframe that is so great compared to our short human lives that we call it a renewable resource. When we talk about resources, as I said, the focus is on humans, use by us. As if that thing, minerals or trees, are there just for us. A resource is something to be removed and used.

What do you think of when you read the word asset? It is usually something that is beneficial as it is, a complete whole. For example, you might say that a view of the lake or river is a reall asset or of a beautiful tree in your yard. That doesn’t mean that you have to change it in some way to get this benefit. An asset usually means something you need to look after and maybe get more of, but not something you want to get smaller or degrade in some way.

The concept of economics is useful here. If you have money in the bank it is best if you can keep the same amount in and only take out the interest. For me, this is the essence of sustainability. This idea can be applied to all things on the earth. What would happen if we decided to live off the interest of the assets of the earth and make sure that we did not reduce the principle? In a film about EF Schumacher (Small is Beautiful Economics as if people mattered) that I saw years ago, he talked about this basic idea in relation to the natural environment. The next time you are reading some information about a “resource” use try substituting the word asset and see what image it brings to mind. In some cases, this may help to avoid continued destructive activities on the earth. Let me know if using the word asset has changed perceptions and human behaviour. Make your comments