Institutions-Technology and Use of Natural Resources:

Use of natural resources, both renewable and non-renewable, involves production and subsequently consumption of these manufacture/processed products. The nature and quality of institutions and technology in existence in a.  Society determines the rate and pattern of economic activity.  Natural  resources, labor  and  capital  in conjunction  with  technology  form  the  economic  subsystem and  determine the production  function  ire  economic terms. Technology can augment resources as we have seen in the case of 'green revolution' in agriculture. Similarly, more efficient use of any other raw material or factor of production can augment that resource. The production system thus depends on the availability of natural resources which is augmented and facilitated by knowledge system or technology, institutions and cultural practices. Institutions and organizations represented by the state, other agencies, civil society and the market also influence the patterns and method of resource utilization. In practice, institutions and organizations play a dual and complementary role as they are run by a set of rules and they also have organizational structures working for them. The state has departments and bureaus and markets have retailers and distributors who act as disseminators of rules set by various institutions. The interplay of these institutions and organizations sets limits to the development in technology and the use of resources.