Most people believe economic
development and wildlife preservation are contradictory goals. In the case of
the Adirondack Park, wildlife preservation might actually be the most efficient
way to utilize the land. Since public wilderness does not derive any direct revenue,
it is hard to determine the exact value of the land, which makes it difficult
to argue for preservation from an economic perspective. However, there are
methods of determining the approximate value of wilderness in order to compare
it to the alternative uses for the land.
Though Adirondack Park public land
does not derive any direct revenue, it does create indirect revenue in numerous
ways. A 2001 study by Loomis and Richardson estimated that each acre of
wilderness on the East Coast generated $44 per visitor per year in extra
spending in the communities near the land. This figure is likely invalid today
due to inflation and other factors, but it still demonstrates the indirect
revenue wilderness produces through tourism. Wilderness also derives indirect monetary
value by increasing property values in neighboring areas. A study of real
estate transactions in Vermont observes that residential land values increase
as the properties move closer to protected wilderness areas in the Green
Mountains. Though the study was not conducted in the Adirondack Park, it still
demonstrates a positive correlation between the proximity of wilderness and
property values.
Wilderness is considered a “public
good” because users do not have to pay directly to utilize the land, but this does
not mean visitors do not value its existence. By analyzing the intangible value
of wilderness, it can help us determine the true value of the land. Some examples
are the many environmental functions it serves such as air and water
filtration, maintenance of biodiversity, and climate regulation. Wilderness
also provides invaluable “utility” (an economic term for the happiness or
pleasure someone derives from a good/service) to the people who use it for
physical activity, scientific research, or scenic beauty.
Once we take all of these aspects
of wilderness into account, we can compare the approximate value of wilderness
to other the value of alternative uses for the land such as farming, mining,
real estate development, or creating tourist attractions. In theory, this seems
relatively straightforward, but it is extremely complicated in reality because
it is extremely hard to quantify intangible goods such as happiness.
Ultimately, economic decision-making
boils down to determining how to allocate scare resources efficiently. In this
case, the Adirondack Park is a scarce resource and the dilemma is deciding how
to most efficiently allocate that resource. The biggest issue with trying to
find the “answer” to this dilemma is the large variation in individuals’
definitions of “efficient”. For some people, efficiency is simply producing the
most revenue while others view it as producing the most environmentally sound
result or making as many people happy as possible. Until everyone can decide on
a collective definition of efficient, it is nearly impossible to determine the “correct”
way to use the land in the Adirondack Park.
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