INTRODUCTION
In a state with unlimited want and limited means, economists are faced with the unfortunate difficulty of evaluation of the opportunity of cost of any action. The Cost-Benefit Analysis is the organization framework for these evaluations. This framework lets economists compare and contrast the costs and benefits of proposed policy actions by identifying, qualifying, and comparing one or more options. .
- Economic Analysis Of The Arizona Environmental Issue,A. Cost
The costs involved in maintaining Arizona’s Environment are different from those of many other states, because Arizona is part of the Grand Canyon Division of the National Park System and home to many State and local wildlife preserves and refuges as well. Costs associated with these are not just the immediate costs of maintaining the land, but of also the air quality to preserve the panoramic views, the water quality that supports the abundant wildlife and the infrastructure necessary to make these accessible to residents and guests B. Benefits
In addition to the intangible benefits of these resources, there are fiscally solid market values as well. The Arizona Lodging & Tourism Association (AzLTA) has almost 500 members that among them support 38,000 guest rooms in Arizona. Memberships in this association alone range from Bed and Breakfast Inns to Resorts and include related industry partners. . These businesses represent a substantial fiscal sector as much of its income originates out of state while many of the payable funds are spent within the communities thereby multiplying their value.
C. Risk
As transportation costs fluctuate and disposable income varies according to economic trends, the tourism industry waxes and wanes. However, there is a certain base line expenditure level for maintaining the State and Local Park Systems that is fixed needs funding regardless of the number of guests and visitors come to see them. This can become a serious liability in years that see a downward trend in Park visitationsD. Limitations
The profitability of Arizona's lodging and tourism industry is limited to the facilities ready to serve visitors and guests. At times when there is a downward trend in people visiting the parks there may not be enough income to support a full staff. If there is a sudden upswing it is possible that there may not be sufficient staff to effectively serve and accommodate the guests . E. Problem
The problem is to create a greater base for Arizona's lodging and tourism industry so that facilities can enjoy greater stability. At the same time developing other resources cannot come at the expense of the Park system,
CONCLUSION
Assigning dollar values to non-tangible nonmarket environmental factors; is an extremely difficult task. In the State of Arizona, National and State Park guests generate substantial tourist income that spreads out from the parks to the local and statewide hospitality industry. Therefore in Arizona preserving wildlife habitat is not just a morally sound decision, it is a fiscally sound one as well.
BIBLIOGRAPHY
Arizona Lodging & Tourism Association (AzLTA) . (2013). Arizona Lodging & Tourism Association - Welcome. Retrieved 08 10, 2013, from Arizona Lodging & Tourism Association (AzLTA) : http://www.azhla.com/
Phaneuf, D. (2005, 07 13). Cost-benefit analysis. Retrieved 08 10, 2013, from Environmental Economics: http://www.env-econ.net/2005/07/costbenefit_ana.html
RDFRB, I. , & Mills, E. S. (2013). Economic Analysis of Environmental Problems - Part One. Retrieved 08 10, 2013, from Ideas - RDFRB: http://ideas.repec.org/b/nbr/nberbk/mill75-1.html
Tufts University . (2013). Economic Analysis of Environmental Issues - Part Two. Retrieved 08 10, 2013, from Tufts University : http://www.ase.tufts.edu/gdae/publications/textbooks/JHtext_ch03.pdf
