Environmental Economics Questions

Answer each question thoroughly but try to use 5-6 sentences (pick your words carefully) more sentences are allowed if the answer requires explanation. PLEASE ANSWER EVERY QUESTION COMPLETELY.

PLEASE CITE ALL YOUR answers with citations.

The assignment must contain references with corresponding in-text citations in the body of the document in APA style. Single or double-spacing is allowed. Please use an easily readable 12-point font (e.g., Times New Roman, Arial, Verdana). Your name should appear somewhere at the top. You are free to use an APA paper template if you wish, but omit the Abstract and instead of APA headings, copy and paste the questions.

Environmental Economics

QUESTIONS

A. How is a public good different than a private good (use the concepts of rivalry and excludability)? Are goods/services provided by the government automatically a public good? Why or why not?

(Use Chapter 5 book “Markets and the Environment”, and Chapter 6 of the book “Economics of environmental conservation” to answer this question.)

The Key West Rotary (KWR) (a charitable organization) spends $25,000 per year to 100% fund the City’s annual 4th of July Fireworks. Last year, after a price increase in the cost of fireworks that nearly doubled the annual cost, the KWR asked the City of Key West to help fund this celebration by paying $25,000 towards the event. A resident of Key West protested the City giving (taxpayer) money in this manner, saying that “If the KWR wants a 4th of July Fireworks Celebration, then the KWR should pay for it.” How might an economist respond to this comment?

(This answer requires a legit answer from an economist point of view, please cite where you got your answer from)

Define “open access” fishery and provide a real-world example. Is an open-access fishery a public good? Why or why not?

(You can use a google search and cite the place you obtain it. Also cite from Chapter 6 of the book “Economics of environmental conservation”, Chapter 5 of the book “Markets and the Environment”, to add validation)

How do we prevent a “tragedy of the commons” using property rights? How does this affect incentives? Answer this question using general principles, and not by relying on a specific resource example.

(Read about the properties of the “tragedy of the commons “in Page 92 of Chapter 5 of the book “Markets and the Environment”. You can read about property rights in page 111 of Chapter 6 of the book “Markets and the Environment”. You can read about incentives in Chapter 5 of the book “Markets and the Environment”. Use outside sources as well to supplement answer)

A. Suppose we want to conduct a study looking at the economics of wildland fire prevention (e.g., fuels treatment). Which method of valuation to you believe would best fit this situation? Why?

Environmental Economics Quiz

For this question You can learn about valuation from these links:

Introduction to Valuation – https://www.youtube.com/watch?v=0CHIs9dLvxA

Classes of Values – https://www.youtube.com/watch?v=q8AZHtF2f50

Market Based Valuation Method – https://www.youtube.com/watch?v=M0ZdV5WU5K4

Replacement Cost Method – https://www.youtube.com/watch?v=iTW05vFILXY

Avoided Cost Method –https://www.youtube.com/watch?v=hOX6WrR79Ao

During the fall, 2018 California wildfires, some wealthy homeowners were chastised for hiring private fire fighters to protect their homes. Explain how their actions conferred a positive externality on their neighborhoods. Should these people have been chastised?

(You can read about positive externalities on Chapter 5 book “Markets and the Environment”)

Suppose Florida Fish and Wildlife is considering restricting the harvest season as well as increasing the minimum size for the recreational harvest of Yellowtail throughout Monroe County, Florida. Monroe County is concerned that increasing size limits and reducing the number of months that the fish can be harvested will negatively impact the area’s economy and hires an economist to look at the situation. What method of valuation would best fit this situation? Justify your answer.