In 1997, residents of Maine were surveyed to establish the value they placed on
ID: 1155537 • Letter: I
Question
In 1997, residents of Maine were surveyed to establish the value they placed on the Peregrine Falcon, which at the time was estimated to have 8 breeding pairs in the state. A recovery plan was proposed and survey recipients were asked, "Suppose the proposed fund to increase Maine's Peregrine Falcon population was on the next State ballot. It would cost you $________ in a one-time payment through increased taxes, would you vote to approve the proposal. YES/NO (circle one). The number put into the blank was randomly chosen in order to get a diverse sample of relative value points.
Which of the following is true about this survey?
It is measuring use value
It is measuring option value
It is measuring non-use value
It is measuring both option and non-use value
It is measuring use value
It is measuring option value
It is measuring non-use value
It is measuring both option and non-use value
Explanation / Answer
A non use value is the one where the people assign economic value to the good they may never have or would never use it in future. It is used for natural resources .
it has 4 categories : option value , bequest , altrustic and existence value.
option value is the one where the individual is willing to pay for preserving some ecological or environmental asset even when there is little or no probablility of the individuals for using it ever in the future.
It is a sub categort of non use value which mainly focusses on preserving the natural environment be it the wildlife, theri natural habitats , endangered species of wildlife etc. It may have a potential demand in future ( there is a probability )
As the question given above , we see that the fund used to increase Maine's Peregrine Falcon population is simply a non use value as people by contributing to increasing its population will not have a direct use , rather they might have an indirect use ., ie they can benefit by merely saving it for the future.
So it is measuring both option and non use value ie option D
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