Natural Resource Economies Questionnaire

Description

1)Define the 5 different types of capital discussed in class (10 points). Provide an example of each type of capital applied to the creation of Odell’s IPA, Odell Brewing Company, Fort Collins, Colorado (10 points). (Chapter 2)

2) Construct a single model that can be used for illustrating the management of renewable, nonrenewable and recyclable resources over two time periods (5 points). Provide a definition and example of each type of resource (5 points) and a brief interpretation of the variables in the context of the resource (5 points). Identify all situations under which sustainable extraction rates might take place (5 points). 

3) Complete the table below (10 points) that illustrates market failure under open access beach. Identify the open access solution and the socially optimal solution (5 points). Discuss the technical differences between privately optimal and socially optimal resource use and at least two means by which the situation might be improved from society’s perspective (5 points). 
Daily costs and returns from an open access beach
Number of visitors (#)
Benefits per visitor ($)
Total benefits
($ revenue)
Cost per visitor ($)
Total cost ($)
Net returns per visitor ($)
Aggregate net returns ($)
1
20
14
2
20
14
3
20
14
4
18
14
5
16
14
6
14
14
7
12
14
8
10
14
9
8
14
10
6
14

4) Provide a real world example and graphically illustrate a negative production externality. Graphically demonstrate how the following tools might be used to arrive at the socially optimal level of output: 1) taxation; 2) production quantity controls. Discuss the role of incentives and the likely distributional implications of your graphical solutions. Be sure to label all components of your graph. (20 points)

5) The following table describes the benefits and costs arising from a program to restrict emissions of a pollutant. Current emissions are 10 tons/month. Identify the emissions level at which net benefits would be maximized. Show that this is not the same as the emission level that gives the highest benefit-cost ratio. Identify the economic optimal level of emissions and the approximate cost recovery level of emissions. Explain the discrepancy among max net benefits, cost recovery and max benefit-cost ratio.


6) Illustrate and prove that the rate of output that equates MSB with MSC is (statically) efficient. Graphically illustrate that static efficiency results in greater benefits to society than production at a level greater than static efficiency would imply. (10 points) In a second graph, show and discuss what happens to the statically efficient rate of output when there is population and income growth? (10 points).

7) Let D equal the domestic demand for oil, Sd equal the domestic supply and Si equal imported supply of oil for gasoline. Assume the world supply is infinitely elastic and the domestic supply is more price sensitive. Assume we currently import some oil and produce some for the domestic market. 
a) Graphically illustrate the scenario above. (5 points) 
b) Our domestic policy objective is to ‘minimize dependence on imported oil.’ Illustrate the effect of 1) an import tax on oil, 2) a domestic oil subsidy, and 3) domestic investment in hydrogen powered vehicles could meet that policy objective. (you may draw additional graphs, if you prefer) (10 points)
c) Discuss the welfare implications of each policy option. (5 points)

8) Many consider fossil fuel consumption to be fairly inelastic in the short run and more elastic in the longer term. In response to sharp increases in the price of petroleum (a) first people change their short term behavior to use less fuel, but more importantly (b) the expectation of long term price increases launched a wave of research into substitute sources of energy and their adoption by consumers. Please graphically illustrate effects (a) and (b) (10 points). Then (c) demonstrate graphically the likely effect of subsequent fossil fuel price decreases on fossil fuel demand (5 points). (d) Discuss the long-term effect of price expectation induced technological innovation and consumer preferences (5 points).

9) A. Create a graph describing a hypothetical relationship between Timber values (H) and Biodiversity values (E) in order to establish the optimal number of clear cut timber plots (n) within a forest when the objective is to maximize the economic returns to both timber and biodiversity. (10 points)
b. Please tell the story of this graph. Identify and provide the economic intuition for the optimal number plots when managing for 1) wood, 2) biodiversity and 3) both. (10 points)

10) a. Following class discussions and the text, provide a fully labelled graphical illustration of the theoretical relationship between fishing effort and revenue.(5 points)
b. Identify maximum fish stock, zero fish stock, maximum sustainable yield, the socially optimal rate of harvest and the open access solution. (5 points)
c. Identify the resource rents and in situ value. (5 points)
d. Discuss what causes these three possible effort rates (MSY, E* and OA) to differ and the implications of each effort rate on the health of the fishery (5 points).

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AREC/ECON 340:
Introduction to Natural
Resource Economics
Module 2: Market failure, public policy and analytical
approaches
Chapter #7:
Public Policies for Natural
Resources
Sticks, sermons and carrots: How do incentives
influence behavior?
Public policy for efficient natural resource
management:
? Policy:
? the collective action of individuals through governmental
institutions.
? helps society meet objectives for natural resource
management.
? can take place at a variety of scales and employ a number of
tools.
? result is a multiple-tiered and interconnected policy
environment guiding the management of natural resources.
Effective public policy:
Evaluation criteria
? goals by which to judge a public policy: efficiency,
equity, enforceability, and flexibility.
•
•
•
•
Economic efficiency:
•
•
•
maximum net social benefits from policy alternative.
Equity/equitable:
That which is fair.
Flexibility:
Adaptation to locational, technological, or temporal
conditions while reaching its objectives.
Enforceability:
•
the ability to monitor compliance with regulations as
unobtrusively and costlessly as possible.
Equity: Example table 7-1 in the book
Policy A
Benefits
Costs
Net Benefits
Policy B
Benefits
Costs
Net Benefits
Policy C
Benefits
Costs
Net Benefits
Total
1
Individual
2
3
4
5
100
80
20
20
16
4
20
16
4
20
16
4
20
16
4
20
16
4
100
80
20
20
40
-20
20
10
10
20
10
10
20
10
10
20
10
10
100
80
20
80
16
64
5
16
-11
5
16
-11
5
16
-11
5
16
-11
Property rights
Property rights are a fundamental institution governing
who can do what with resources. It refers to a bundle of
rights which include:
• Use rights: involves controlling the use of the property
• Extraction rights: the right to capture the benefits from
the property
• Transfer rights: the right to sell or lease the property to
someone else
• Exclusion rights: the right to exclude someone from your
property
• Encumbrance rights: the right to use the property as
security
Private Property Institutions
Private property institutions:
?
?
complete, enforceable, transferable, combined with a complete set
of competitive markets
Complete :
?
?
Claims to stock and flow of resources specified and known.
Parameters of property rights are clear, known, and respected by
possessor and rest of society.
Transferable:
?
?
must be able to transfer a valuable right to a third party.
Presence of markets:
?
?
must have a well functioning market for the goods and services in
order to ensure the efficiency of any transactions.
Typology of policies/ policy instruments
• The basic purpose of policy instruments is to correct for market
(and institutional) failures such as externalities
• Policy instruments are often classified as “market based” (e.g.
taxes, subsidies, tradable permits, etc.) versus “command and
control” (e.g. regulations, laws , bans etc.)
• Some political scientists insist that there are only three basic
categories of policy instruments: aptly nicknamed “carrots”,
“sticks”, and “sermons” to symbolize economic incentives, legal
instruments, and information instruments, respectively
Types of Public Policies
Types of policies:
1) Incentive based-policies and
2) Direct public action
1) Incentive based policies:
?
policies that lead to voluntary private decisions in line with social
objectives.
Property rights-based policies:
?
socially established individual or collective rights to natural
resources.
Government sponsored policies:
?
Uses tools such as taxes and subsidies to bring private costs and
benefits into line with social costs.
Types of Public Policies
2. Direct Public Action
? Direct controls (command-and-control):
?
policies that limit the actions of individuals preventing them from
making decisions out of line with social objectives.
Direct public production:
?
?
public agencies own, produce and manage the distribution of
natural resources.
Types of policies in action
Taxes: $7 per day-fisher
Direct control: requires a lot of
information
Government/Market Failure
Market failure:
?
?
When the features of the goods or services or social institutions
evolved to manage them result in socially sub-optimal resource
allocations.
Government failure:
?
?
?
when government action actually increases the costs or decreases
the benefits derived from natural resources.
Due to high transactions costs, inadequate enforcement, perverse
incentives, policies are redistributive rather than efficiency
improving, or objectives are unclear.
Chapter #8:
Principles of analysis
Chapter 8: Key point summary
• Analytical tools to evaluate policy alternatives or
proposed projects.
• Environmental Impact Assessment, Economic Impact
Analysis, Cost Effectiveness Analysis, and Social BenefitCost Analysis are reviewed.
• Scale of analysis, distributional issues, discount rate and
valuation techniques are important concepts.
Impact Analysis
Environmental Impact Analysis (EIA):
? Estimate of the repercussions of a project on natural
resources and the environment (most countries have laws
that require the analysis to be done, National Env. Policy
Act of 1970 for US)
Environmental Impact Assessment (EIS):
? Report (EIR) that will clarify the linkages between a project and
its impact on the natural resource base.
?
End result of an EIA.
Economic Impact Analysis: Estimate of the repercussions of a
project on the economy.
Cost-Effectiveness Analysis
• A type of economic impact analysis that focuses on the
relative costliness of policy alternatives for a given
objective.
• Important when the objective is agreed upon but choice
of how to get there needs to be made
Environmental Impact Assessment (EIS)
Components:
• Description of the environmental impact of the proposed
action.
• Description of any unavoidable environmental effects.
• Relationship between short-term resource uses and the
maintenance or long-term productivity of the resource base.
• Any irreversible commitments of resources involved in the
proposed action.
Economic Impact Analysis
Potential components:
• Employment numbers (or unemployment rates), total or by
industry.
• Household incomes.
• Rates of technical change in certain resource extraction
industries.
• Rates of inflation.
• Trade balances with other countries.
Economic Impact Analysis: example
Cost-Benefit analysis:
Evaluates all of the costs and benefits of a proposed action or
project.
Benefit Cost Analysis: Steps
1. Decide from whose perspective the analysis should be done
(who is the public?).
2. Clearly specify what is to be evaluated.
3. Describe all project inputs & outputs.
4. Estimate social values of inputs and outputs
5. Compare the benefits and costs.
SBCA: Considerations
Sensitivity analysis:
?
?
determines sensitivity to changes in the parameters or
assumptions.
With/without principle:
?
?
?
B-C analysis must be done from the perspective of what is likely to
happen with versus without the project.
Not ‘before and after’
Nominal interest rate:
?
?
the rate of interest observed in the marketplace.
Real interest rate:
?
?
the nominal rate of interest adjusted for the rate of inflation.
Equity and time:
Time preference approach:
?
?
the discount rate reflects personal preferences.
Marginal productivity of investment approach:
?
?
the rates of return to resource use should reflect the returns to
private investment.
Horizontal equity:
?
?
people in similar situations should be treated similarly.
Vertical equity:
?
?
people of different economic situations are treated “similarly”
Effect of discounting
Horizontal equity
Chapter #9:
Valuation of Natural
Resources
“I believe that a great part of the miseries of mankind are
brought upon them by false estimates they have made of
the value of things.”
Benjamin Franklin
Summary:
Reviews the tools and techniques used to quantify
costs and benefits.
Benefits AND costs must be evaluated.
Supply AND demand conditions must be
considered.
Methods include market based approaches and
non-market valuation methods
Address use and non-use values of natural
resources.
“What is nature worth?”
©United Nations University ::Dr. Gretchen C. Daily video on “What is nature worth ” YouTube
©TEEB
The Economics of Ecosystems & Biodiversity
©TEEB::TEEB “Mofilm 3rd prize” YouTube
©TEEB
TEEB Training
Types of analysis:
Direct market price analysis:
?
?
?
Good or service is commonly traded in the open market.
Can be consumptive or non-consumptive value.
Indirect market price analysis:
?
?
?
Good or service is not directly traded in the market, but
closely related activities are valued in the market.
Hedonic method, travel cost method.
Non-market valuation techniques:
?
?
?
Good or service is not directly or indirectly reflected in
markets.
Method constructs a hypothetical market in which WTP
and WTA are elicited from stakeholders.
Market Valuation
Techniques
Physical Linkages
Dose-response
Functions
Change in Outputs
(productivity)
Change in Inputs
(resource costs)
Cost-of-illness
Replacement Cost
Non-market Valuation
Techniques
Behavioural Linkages
Revealed
Preference
Hedonic Property
Analysis
Hedonic Wage-risk
Analysis
Travel Cost Method
Preventive
Expenditure
Benefit Transfer
Stated
Preference
Contingent Valuation
Method
Conjoint Analysis
(choice models)
Benefits from the ecosystem (US$ or US$/ha)
Cost-benefit analysis vs TEV
Biodiversity
conservation
Net increase
in ecosystem
benefits
Biodiversity
conservation
Downstream
water services
Recreation
Extraction of
forest
products
Downstream
water
services
Recreation
Extraction of
forest
products
Cost of
conservation
Without
conservation
With
conservation
Increased
biodiversity
conservation
Increased
downstream
water services
Increased
recreation
Reduced
extraction of
forest products
Cost of
conservation
Source: Pagiola et al. (2004)
Gross increase
in ecosystem
benefits
Opportunity cost of
foregone
ecosystem benefits
Cost of conservation
measures
Cost-benefit analysis of
conservation decision
End of Module 2
AREC/ECON 340
Natural Resources Economics:
An introduction
Colorado State University
Dr. Andy Seidl, professor
Module 1:
Introduction to Natural Resource
Economics and Core Concepts
Chapter 1:
Important Issues in Natural Resource Economics.

Chapter 1: Take Away Lessons
• Students should understand:
• the broad palette of natural resource allocation issues that
fall under the umbrella of natural resource economics;
• that opinions differ among economists and others
regarding the basic underlying assumptions of natural
resource economics;
• where natural resource economics fits within general
economic theory and application.
Chapter 1: Key concepts
• Economics:
• Allocation of scarce resources among unlimited
desires.
• Choices and tradeoffs, not money
• Individuals (people, families, firms, nations)
• Natural Resource Economics:
• Allocation of natural resources/capital of current
and future individuals and broader society.
• Resource valuation, economic incentives, &
institutions that get us the world we want.
• Broader societal decisions.
World Water-Related Emergencies
throughout the World
Number of Climate-Related Floods
in the World, 1980-2011
Key concepts: Natural Resource
Adequacy
Key terms and concepts:
scarcity, relative vs absolute prices, existence of
substitutes, population vs available food,
precautionary principle.
Human evolution and the environment:
• Pessimistic
• closed system or Malthusian, limits to growth;
• Optimistic
• open system, believers in innovation and technological
progress, limitless growth
Limits to Growth?
Malthusian growth
600
500
Prod/Ppn
400
Production
300
Population
200
100
0
1
25
50
75 Year
100
125
150
175
200
225
9 Planetary Boundaries
Chapter 2:
Natural Resources & the Economy
Ch.2: Take Away Messages
• Earth as raw inputs to create humanserving outputs.
• Humans as managers/stewards of the
Earth’s resources toward their own and
future generation’s benefit.
• Benefits can result in the consumption OR
the nonconsumption of resources.
Human system (Economy):
• House management (Greek)
• Means by which people organize themselves to
improve their welfare/well being.
• Sociological unit.
• Often analyzed in terms of geopolitical units.
• Economy is organized to allocate natural
resources toward societal objectives.
Capitals Framework
1.
2.
3.
4.
5.
Human capital
Natural capital
Physical capital
Financial capital
Social capital
NR allocation mechanisms
?
Markets:
?
?
?
resources allocated through voluntary interaction
among individuals
Preferences expressed with dollars/farkles.
Governments:
?
?
?
resources allocated based upon vote of those with
standing.
Preferences expressed via the political power of
individuals or coalitions of individuals.
Efficiency:
?
resource allocation that reaches social objectives for
the least economic cost.
Natural system (ecology)
•
Ecology: Nature management (Greek)
Quantity:
• Stock of natural capital:
•
•
amount of natural resources in tons
Flow of natural resources:
•
rate of extraction or regeneration of the nr
base.
Quality:
• Measures of different features of the natural
resource base at particular points in time.
Terms and Modeling
?
Renewable:
?
?
nr that regenerates itself within an economically
viable period of time.
Nonrenewable:
?
?
nr that does not regenerate itself within an
economically viable period of time.
Reversible vs Irreversible:
?
?
extent that economic decisions can be undone.
Recyclable:
?
a portion of the resource used today can be
reused tomorrow.
Simple Two Period Model
S1 = S0 – Q0 + ?S
Where:
• S1 = Amount (stock) of resource available in
period 1;
• S0 = Amount of resource available in period 0
(initial conditions);
• Q0 = Amount of resource used in period 0; and
• ?S = Amount of regeneration of the resource in
period 0.
Two period model
If ?S=0, then nonrenewable resource.
So, if Q0 >0, S10, then renewable resource.
So, if Q0 =?S, then S1=S0
sustainable rate of extraction
…if Q0 S0
stock of resource is increasing, probably sustainable
…if Q0 >?S, S1 0 ? Q0 > Q1; (P0 < P1 ) Historical copper prices Energy market imports & exports World Energy Consumption US Energy Consumption by Source US Petroleum consumption by sector https://wri.live.kiln.digital/ Real prices of coal, gas, & electricity; US Energy intensity per $GDP Natural resource economics Renewable resources: Forest management Renewable Resources • Natural resources that regenerate themselves at an economically exploitable rate. • Economic questions remain the same, but more complicated: • Given the biological rate of growth, current technology, economic incentives and available institutions, how much do we harvest and when? • What is the net present value of cutting trees today vs letting them grow? • What is the discount rate, price of timber today and tomorrow, cost of production, opportunity cost of land in alternative uses. Issues in Forest Management • Maintaining production of traditional forest outputs • Timber products: wood, paper. • Non timber products: medicinal & aromatic herbs (oils & spices), fruits & nuts, wildlife habitat. • Shift in primary forest activity from traditional uses to outdoor recreation. • Conversion pressure: to agriculture, residential or commercial uses • Identification valuation & preservation of “new” types of forest services • Biodiversity, carbon sequestration, ecosystem services Current forest extent—where forests grow today AndWorld moreResources … Institute Deforested or degraded lands: Half of the original forest and woodlands Intact forest landscapes Managed natural woodlands Managed natural forests Degraded and deforested landscapes World Resources Institute Potential forest extent—where forests might grow And more … World Resources Institute Forest Benefits Non-wood Forest Products (NWFPs) Wood Forest Products (WFP’s) Charcoal in Morocco. - Photo: M. Verdone Carbon Sequestration Fuel wood Woodland in northern Ghana. - Photo: M. Verdone Villager in Ghana. Photo: S. Maginnis Cultural Values Canopy walk, Ghana. - Photo: M. Verdone What about the social impacts of changing incentives? Volume of Wood by Age of Forest Q wood DQ/ Dt Time Forest harvest decisions • Tradeoff between time of harvest and quantity harvested • Maximum sustainable yield (MSY): rate of extraction that maximizes quantity extracted over an infinite time horizon • Optimal timber harvest rotation: Extraction at MSY implies each acre will be cut every t years, thus 1/t of the total property should be cut each year to minimize capital requirements for cutting. US Timber Harvest Optimal harvest time • Max NB of Harvest; Optimal timing: • MB of cutting today = MC of waiting till tomorrow • If V0: Value of wood harvested this year V1: Value of wood harvested next year DV = V1 –V0: Value of waiting 1 yr to cut. C = harvest costs r = discount rate S = PV of all future net benefits when forest is harvested with optimal rotation period. • Then: V0 – C + S = NB of harvesting this year. • (V1-C+S)/(1+r) = (V0+DV– C+S)/(1+r) is present value of waiting until next year. Optimal Harvest Model (V0+DV– C+S)/(1+r) = V0 – C + S V0+DV– C+S =(1+r) (V0 – C + S) DV = rV0 – rC + rS DV = r(V0 – C + S) Benefit of waiting one more year to harvest = Cost of waiting. If > then wait.
If = then harvest.
If < too late. Optimal Harvest Model • If the forest is young and growing, then.. (V0+DV– C+S)/(1+r) > V0 – C + S
Wait: DV is positive and greater than 1+r
• As DV declines we approach the expression…
(V0+DV– C+S)/(1+r) = V0 – C + S
Optimal harvest time.
• If (V0+DV– C+S)/(1+r) < V0 – C + S Too late: Past optimal harvest time. Optimal rotation Factors affecting optimal rotation 1. 2. 3. 4. Ý Harvest costs (C) Þ shift r(V0 – C + S) downward, lengthening the optimal rotation period. Ý Interest rate (r) Þ shifts r(V0 – C + S) back, reducing the the rotation period. Ý Price of timber (V) Þ ambiguous effect; V0 reduces, V1 increases Ý Nontimber values (S) Þ typically reduces rotation period Portfolio Management Perspective DV = r(V0 – C + S) DV/(V0 – C + S) = r Where r is the rate of return obtainable on productive assets and DV/(V0 – C + S) is the expected rate of return on forest investments in the future Management objective: Maintain the trees as long as the rate of return from doing so exceeds the rate of return on alternative assets. Multiple objectives: Optimal cutting • What if the question is not how much to cut per year, but rather where (or how many plots)? • Clearcutting vs n noncontinuous 1 acre cuts vs some intermediate solution • Consider: • H = economic costs of harvest, which increase in n • E = ecological costs of harvest, which decrease with n • T = total costs = E + H • If the Marginal Private Costs only take into account the economic costs, then the ecological costs can be considered User Costs. • The socially optimal # of plots is that which minimizes total costs. Economics of marine resources and other biological resources characterized by open access World Wild Catch & Aquaculture Production Historic US Fisheries Landings Issues in Marine Economics • Overfishing: Fishing at a rate that is greater than the social optimal • Overcapitalization: Investment in physical capital at a rate greater than is socially optimal in order to catch more fish more quickly (but not efficiently over time) • Water pollution • Fishing (property) rights conflicts Bioeconomic fisheries model • At any given time there is a certain weight of fish available (ie biomass, stock). • Fish stock in any given period is dependent upon: • • • • Current and past fishing pressure Predator/prey relationships Rate of biological regeneration Climate, water quality, disease, etc. ForestryàFisheries Model • Same basic growth function for similar reasons • Not interested in age of fish biomass so much, but the relationship between the total biomass and the rate of change of the biomass • Yield/Harvest óStock relationships Q Fish stock Fish Biomass over Time DQ/ Dt Time fish stock allowed to grow (yrs) Time Fisheries model • Start with biological growth model • Relationship between stock size and change in stock size • Also, relationship between stock size and sustainable yield or harvest • All rates of harvest along the curve are biologically sustainable • May not be biologically stable • May not be economically optimal • Can become a bioeconomic model if there is sufficient harvest pressure to warrant management Logistic model of ppn growth of a fishery MSY y1 Growth Function un st ab le ck o t ns I D ze Si Stable y2 Maximum biomass S3 S1 Stock size (biomass) S2 S0 Biological model à Bioeconomic model (Step 1) • Yield implies harvesting effort. • Transform model from stock ß> yield to effort
ß> yield function
• Harvesting effort implies resources are devoted
to catching fish.
• Capital goods, labor, materials, energy, time
• More effort does not imply more sustained
harvest, just as more stock does not imply more
sustained harvest.
Biological model à
Bioeconomic model (Step 2)
• Any yield of fish biomass implies a certain
marketable good or substitute for a market
good.
• So, multiply the effort-yield curve by the unit
price of harvested fish to yield a total revenue
curve.
• Similarly, fishing effort has an opportunity cost.
• So, a total cost curve can be constructed to
represent the opportunity cost of a unit of effort
(perhaps wage rate, if effort = labor)
• Higher opportunity cost à steeper total cost curve.
Bioeconomic fisheries model
• Net income = TR-TC @ effort e
• @ e*, max net income, max resource rents (r1-r2), AR>AC
• @ em, MSY, but not necessarily economic
efficiency/optimality
• @ e0, TR=TC, AR=AC, open access solution, rents are
dissipated.
Ways to deal with the open
access fisheries problem
1. Barriers to entry (limit effort)
•
Territorial use rights in fisheries (TURF)
•
•
Good for species that don’t move much (shell fish,
crustaceans)
Based on physical area, not on stocks/flows.
2. Regulate practices/technologies (increase
costs)
•
•
Size of boat, tackle, length of season, licensing
Costs of enforcement may be an issue
3. Catch limits (impose quotas)
•
•
Total Allowable Catch (TAC), Total Catch Quota
(TCQ), Individual Transferable Quota (ITQ)
Can result in over capitalization
Individual Transferable Quota
1. Set the TAC to reduce harvest
2. Divide the TAC among the designated
participants according to some equitable
distribution rule in order to reduce over
capitalization incentive
3. Then allow trades to increase efficiency and
allow flexibility/evolution.
•
Operating currently in New Zealand, Australia,
etc. with some success.
End Module 3
10 9
8
0
0
7
6
5
4
3
2
1 0
Emissions (tons/month)
Benefits ($ mil)
Costs ($ mil)
O
4
8
18
32
44
54
62
68
72
74
0
2
4
6
9
14
21
36
48
64 86
Total cost
($)
Net returns Aggregate net
per visitor ($) returns ($)
Daily costs and returns from an open access beach
Number of
Benefits per
Total benefits
visitors (#)
visitor ($) ($ revenue)
1
20
2
20
3
20
Cost per
visitor ($)
14
14
14
14
14
4
18
5
16
6
14
14
N
7
12
14
8
8
10
14
9
8
14
10
6
14
.

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NONRENEWABLE

number of visitors

Recyclable Resources

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