Lecture_11 - NR Econ Lecture 11 Today's topic Module IV:...

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NR Econ Lecture 11 Today’s topic Module IV: Endangered Species Conservation B. Cost-Effectiveness Analysis (continued) -- Formulation 2 of the problem: “Biggest Bang for the Buck” -- Application: Economist’s perspective versus Biologist’s perspective
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Summary of Monday Cost-effectiveness analysis Economist’s perspective, the “least cost protection strategy” Contrast: politician’s perspective, the “uniform protection strategy” Cost-effectiveness frontier: extension of a cost-effectiveness analysis
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Cost-Effectiveness Frontier Cost-effectiveness frontier (definition): the set of cost-effective strategies as a function of the number of species recovered; the curve that gives the least-cost solution to species recovery as the number of species recovered is varied. Thought experiment: Set the species constraint; solve for cost min Increase the constraint; solve for cost min Increase the constraint; solve for cost min Repeat; Repeat; etc etc.
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Example • Two counties, N bar = 4, N 1 * = 3, N 2 * = 1 County 1 is relatively low cost; County 2 is
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This note was uploaded on 04/03/2008 for the course ECON 472 taught by Professor Moore during the Winter '08 term at University of Michigan.

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Lecture_11 - NR Econ Lecture 11 Today's topic Module IV:...

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