Practical 4--
A simple cost-benefit comparison of a land-use change
Sample projects -- this is what I expect:
Birder's Paradise represents the "benefit" side
of the work you have already done - on "costs" of the land use changes
you propose. For this week's practical I want you to make a similar
spreadsheet for your proposal, THEN take the costs and compare them with
the benefits OR subtract the costs from the benefits to show the profit
you will make -- as in the second example below.
Birders Paradise:
The value of a restored wetland in the Great American Bottoms
I have used the idea of visitors bird-watching at our wetlands to assess
the economic benefits of visitor use. I have not included here the estimated
costs of making the wetland.
This is only an example of the kinds of benefits you might consider-
you do not have to use a visitor model for your project
I have assumed:
-
35,000 visitors per annum -- based on 10 school buses a week for 30 weeks
(10*50*30=15,000); 100 day visitors per summer weekend day (100*2*30=6,000);
20 day visitors per regular day (20*300=6,000); 40 rooms booked at the
local motel each weekend during summer (40*2*2*30=4,800) ... and some casual
visitors ...
-
4 in each car -- averaging over the minivans full of kids and the birders
travelling two-to-a-car.
-
3/4 of them eating meals at the restaurant -- the overnighters eating three
meals on the economy; the adult day visitors just one meal; the schoolkids
none.
-
5,000 staying overnight, average two nights stay two to a room -- see above
-
etc...
| Birder's
Paradise |
|
|
|
| assumed visitors
per annum |
35,000 |
|
|
|
|
|
|
|
| expenditure |
unit cost |
# of units/user |
users/annum |
$$ per annum |
|
|
|
|
|
| transport |
$0.25 |
100.00 |
15,000 |
$375,000.00 |
| meals |
$10.00 |
1.00 |
20,000 |
$200,000.00 |
| accommodation |
$50.00 |
2.00 |
1,200 |
$120,000.00 |
| books, postcards |
$5.00 |
1.00 |
35,000 |
$175,000.00 |
| trinkets |
$4.00 |
0.50 |
35,000 |
$70,000.00 |
| special clothing |
$2.00 |
1.00 |
35,000 |
$70,000.00 |
| special equipment |
$4.50 |
0.25 |
35,000 |
$39,375.00 |
|
|
|
|
|
| total expenditure
per annum |
|
|
$1,049,375.00 |
|
|
|
|
|
| total per visitor |
|
|
|
$29.98 |
The Bottom Line:
John Bunyan's Tree Farm:
Conversion of abandoned residential land in Emerson Park to agricultural
use
This example simply adds the profits likely to be gained when the trees
are sold and then subtracts costs from profit to indicate the economic
benefit (or in this case loss) accruing to the proposed tree farm.
Please publish your page to your group's own IMLAB account and publish
the URL on the Discussion Page.
Modified: 28 September 1999, Brian Orland
