QUESTION 1

To assess the value of wildlife in Shark Valley State Park for a cost-benefit analysis, we
can consider the economic contributions of the park's wildlife in terms of tourism and
recreational activities. According to Shark Valley's website information I've found the following
price table:

Then, if the park attracts 100,000 visitors from the different categories above annually
and each visitor spends an average of $25 on park-related activities, the total economic impact
would be $2.5 million. The presence of wildlife, particularly unique species like alligators and
seabirds, enhances the park's attractiveness, potentially increasing visitor numbers and
spending. On the cost side, investments in conservation and habitat preservation can be
considered. Assuming they would re-invest 90% of what they make in a year. Cost would be
$2.25 million and benefit of $2.5 million.

While it's challenging to assign an exact value to the intrinsic worth of wildlife, the
economic impact generated by tourism and recreational activities provides a tangible metric
for cost-benefit analysis. This approach acknowledges the economic importance of preserving
wildlife in Shark Valley State Park, recognizing the interconnectedness of environmental
conservation and economic value in the context of a popular tourist destination.

QUESTION 2

In the market for water bottles sold in parks like the Everglades, the demand curve
typically slopes downward, indicating that as the price decreases, the quantity demanded
increases. Meanwhile, the supply curve slopes upward, demonstrating that as the price rises,
suppliers are willing to produce and offer more water bottles. The point where these curves
intersect is the market equilibrium, determining the price and quantity at which the market
operates. However, the full price of water bottles extends beyond the market price,
incorporating externalities such as the environmental impact of plastic waste. This external cost
can be depicted as a leftward shift in the supply curve, indicating an increase in the overall full
price that encompasses both the market price and the additional environmental costs. The
new equilibrium reflects this comprehensive pricing structure, accounting for both market
dynamics and externalities.

QUESTION 3

Applying marginal analysis to sustainability involves assessing the incremental benefits

and costs of decisions related to environmental conservation and resource management. For
instance, in the realm of renewable energy, homeowners can evaluate the marginal benefits of
investing in additional units of solar or wind energy, considering the incremental reduction in
carbon emissions and the long-term sustainability of energy sources. Concurrently, the analysis
involves assessing the marginal costs associated with each unit of renewable energy
infrastructure, encompassing production and installation expenses. This approach aids in
optimizing investments for the most sustainable energy mix by comparing the marginal
benefits to the incurred costs. When I was working for a solar energy company, we were
trained to quickly determine which houses would be optimal for installation of solar panels.
Factors could include the roof and its angle for solar incision, shadows of trees, and the
direction which the roof was facing (some directions yield more energy).

Similarly, when devising waste reduction strategies, marginal analysis becomes

instrumental. Implementing incremental measures, such as recycling programs or waste-to-
energy initiatives, can lead to additional benefits in terms of resource conservation and
reduced environmental impact. Simultaneously, it is important to evaluate the marginal costs
associated with each additional unit of waste reduction. By conducting marginal analysis in
waste reduction, organizations can make informed decisions to identify the most effective and
economically viable strategies for minimizing waste, contributing to a more
sustainable approach.

QUESTION 4

Pollution credits are tradable allowances for emissions within a cap-and-trade system.
The effectiveness of the pollution credits market varies; while it has led to emissions
reductions, concerns exist regarding loopholes and market integrity. Success depends on
stringent regulation, effective monitoring, and continuous evaluation to address potential
shortcomings.

In the context of the Everglades, pollution credits could be relevant if there were
concerns about water quality or specific pollutants affecting the ecosystem. A cap-and-trade
system for pollutants could potentially be implemented, allowing entities within the region to
buy or sell pollution credits based on their impact on water quality. This could provide
economic incentives for businesses to reduce their pollution levels, contributing to the overall
environmental health of the Everglades. The effectiveness would still hinge on proper
regulation, monitoring, and addressing potential loopholes to ensure meaningful
conservation outcomes.

The success of pollution credits in the Everglades depends on the effectiveness of their
implementation, regulations, and ongoing monitoring. If properly designed and enforced, they
can incentivize businesses to reduce pollution, contributing to environmental conservation.
Ongoing evaluation is crucial to ensure meaningful outcomes.