EBF_200-HW_4_F10-solns

You may also argue cv is appropriate here no credit

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Unformatted text preview: own council of Stowe, Vermont must decide whether to allow night skiing at the town’s ski resort. The area is popular for stargazing, and the lights for night skiing will disrupt views of the stars. ANS: Principally, the lights will disturb stargazing which are likely a feature of real ­estate values. The HPM would therefore be appropriate. CV may also be used, because we can always ask people what they think. You may also argue TCM is appropriate here to value the benefit of the lights (they will encourage more skiers) as well as the change in visitors to the area. No credit for damage costs avoided. 3 c) Pennsylvania must decide whether to regulate mercury as an emission from power plants. Inhaling airborne mercury can potentially cause serious health problems. ANS: The damage costs (avoided) method is the most appropriate here, because the health problems likely have well ­established values and a dose ­response relationship between mercury and health outcomes likely...
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