Environmental Public Goods > Preserving or mining a canyon

Answer

A=12, B=4.  Annual consumer surplus generated by the canyon: $180,000.  Present value of CS at r=10%: $1.8M.  Exceeds the price offered by the mining company so the canyon should be preserved.
Site Index | Zoom | Admin
URL: https://wilcoxen.maxwell.insightworks.com/pages/2851.html
Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 05/02/2008