The Belizean government has determined that yearly benefits

Question: Let’s say that the Belizean government has deter…

Let’s say that the Belizean government has determined that yearly benefits of creating a 20 nautical mile reserve are $100,000 due to increased tourism (~200,000 Belizean Dollars) and the costs are $200,000 in year 0 and $80,000 each subsequent year (enforcement costs and lost revenues for local fishers). Consider the alternative of a marine reserve: a managed fishery with estimated net benefits equal to $20,000 Belizean dollars in perpetuity. Which project should be undertaken if the marine reserve were also valued into perpetuity?

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jagguarpaw January 20, 2017 0 Comments

The Belizean government has determined that yearly benefits

Question: Let’s say that the Belizean government has deter…

Let’s say that the Belizean government has determined that yearly benefits of creating a 20 nautical mile reserve are $100,000 due to increased tourism (~200,000 Belizean Dollars) and the costs are $200,000 in year 0 and $80,000 each subsequent year (enforcement costs and lost revenues for local fishers). Using a discount rate of 4%, would we implement the project if we considered 5 years of benefits and costs? Show your work for full credit?

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jagguarpaw January 19, 2017 0 Comments