Economic Benefits of Expanding California's Southern Sea Otter Populations
http://www.biodiversitypartners.org/econ/report/sea_otter.shtml
Okay so i found this article and it made me think of Mary so i had to use it. Mary is all about the enviornment and the animals so if she actually read this or did some posts she would be happy that economics can be related to some sea otters... or any endagered species for that matter.
With an expansion of the sea otter population along the coast near Santa Barabara the SEIS (Southern Environmental Impact Statement on the Southern Sea Otter Translocation Program... what a mouth full) study found that California households would be provided with over $100 million in economic benefits. There are both positive and negative externalities to this expansion...Positive: tourism is going to increase= more jobs, the sea otters will help in the restoration of the kelp forests which help in reducing erosion. Negative: other sea animal populations will decrease... however, the study found that benefits from an increase in sea otters will outweigh the losses of commericial fishing, anyway.
The article mentioned something called existence value benefits which they defined as the value people place on knowing that sea otters are being saved from extinction... they also mentioned that this one of the main reasons that an increase in the otter population would benefit California economically. I guess this goes to show how peoples' attitudes can play a role in the economy... people like to see that their state is working for a good cause and they are going to support it to show other states how "nice" they are. This is what will aid in the increased tourism and recreation to the Santa Barbara area.
Kinda cool how environmental resources can easily benefit economies.
3 comments:
Interesting look at externalities!
That $100 million...all due to increased tourism? Wouldn't that cause more problems just in itself? One of you wrote a paper on the externalities of tourists...
The "existence value benefits" would fall into that range now called "behavioral economics", which actually takes personal feelings into account. What a concept, hey? :) :)
ok, mrs mcdaniel, i thought you said that most economists aren't environmentalists.... so how does this article fit with that? in most cases do the benefits of saving the environment not outweigh the potential profit?
Those darn behavioral economists...they mess us all up. :) :)
All I meant was that it's very difficult to bring the two together. Most economists would not look at a situation and first determine the best way that an environmentalist would see it, because an economist will look at the cost-benefit analysis (what is the marginal cost versus the marginal benefit?).
Behavioral economics is REALLY interesting & new. :)
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