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Provide hydroelectric power

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The construction of a dam that would provide hydroelectric power would result in the loss of two streams: one that is now used for sport fishing, and another that does not support game fish but is part of a wilderness area. a. Imagine that a CV method is used to estimate the social cost of the loss of each of these streams. Would you be equally confident in the two sets of estimates? Why? b. Consider two general approaches to asking CV questions about the streams. The first approach attempts to elicit how much compensation people would require to give up the streams. The second approach attempts to elicit how much people would be willing to pay to keep the streams. Which approach would you recom- mend? Why

Reference no: EM131281220

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