Consider the choice facing the owner of some natural area that is home to a numb
ID: 802351 • Letter: C
Question
Consider the choice facing the owner of some natural area that is home to a number of wild species. a. What conditions have to be satisfied for the owner to be indifferent between conserving the land in its natural state or converting it to some other use? b. Which of the following conditions would be sufficient for the owner to decide to keep the land in its natural state? i. the value of the land, if conserved, is rising at faster rate than the rate of interest. ii. the value of the land, if conserved, is constant over time. iii. the rate of interest is constant over time. iv. the cost of land conversion is rising at a faster rate than the rate of interest. Give reasons for your answer.Explanation / Answer
a)
Conservation of natural resources is a virtuous and worthy. Conserving nature is very important because the biodiversity of the planet is dependent upon the properly functioning of the natural processes. Without a vigorous natural environment, most of the life form would stop to exist. The subject of Conservation is very complex. By conserving nature, the planet and its entire people are guaranteed a steady supply of clean water and fresh air. Animal conservation is very significant for biodiversity. Failure to of animal conservation efforts may cause habitat disturbance or species destruction.
b)
the value of the land, if conserved, is constant over time