endangered species

Question 1

uncertainty

Answer 1

technological:
- lack of knowledge of adverse impacts of new technologies
- inability to forsee new technologies that will be developed
demand:
- tastes and preferences of individuals in future generations may be quite different than those of the current generation
natural:
- refers to large gaps in our knowledge about the environment

Question 2

irreversibility

Answer 2

item selected from todays opportunity set will be eliminated from future opportunity sets

Question 3

reversibility

Answer 3

irreversible dichotomy

no choice is reversible at zero costs

Question 4

sustainability

Answer 4

at a minimum, future generations should be no worse off than the current generation

Question 5

safe minimum standard (sms)

Answer 5

idea: some resources have a critical level, below this critical level it is uneconomical to halt and reverse depletion
primary objective is to maintain the economic possibility of halting and reversing a decreasing of flow and use
advantages:
- flexible
- easy to understand
disadvantages:
- determining the critical zone

Question 6

endangered species act (ESA) vs sms

Answer 6

sms: determine critical zone and establish burden of proof in favor of preventing irreversibility
esa: command to determine threatened and endangered species and burden of proof to get listed for protection

Question 7

is extinction of species economically viable

Answer 7

extinction may result from present value maximization problem
necessary and sufficient conditions:
- discount rate exceeds the maximum reproductive potential of the population
- immediate profit from harvesting the last animal

Question 8

complicating issues

Answer 8

• wildlife owned by the state
• endangered species exists on private property; potential to lose property rights
• endangered species exists on public land that has other economic uses; decrease economic activity

Question 9

why whooping cranes are important

Answer 9

symbolizes the endangered species program

both public and private support

Question 10

stoll and bowker

Answer 10

findings:

• great range fro WTP values
• WTP decreased fr mail survey participants than on-site participants
• WTP increases as income increases
• WTP increases if they are a member of an environment club

Question 11

canes conclusions

Answer 11

• local economies realize economic benefits
• value is directly related to publics knowledge and awareness
• increasing demand on the whopping crane

Question 12

noahs principle

Answer 12

save all the animals and the plants

Question 13

noahs choice or tragic choice

Answer 13

• society values both economic growth and environmental goods but we can’t do all things society wants
• decisions will involve tough tradeoffs

Question 14

principles to resolve noahs choice

Answer 14

• ethical
• practical
• knowledgable
• must recognize complexity of the problem