Skip to main content Accessibility help
×
Home

Accounting for Externalities in Benefit-Cost Measures: An Analysis of a Land Buyout and Associated Projects to Save the Everglades

  • Andrew Schmitz (a1), P. Lynn Kennedy (a2) and Julie Hill-Gabriel (a3)

Extract

As part of efforts to restore the Everglades, in 2008, Governor Crist of Florida proposed the acquisition of 187,000 acres of land from the U.S. Sugar Corporation (U.S. Sugar) for this purpose, but the final purchase in August 2010 totaled only 26,800 acres. This article presents the history behind the alternatives, including the buyout of U.S. Sugar land, to improve Florida's water quality and the health of the Everglades. To determine the benefits and costs of several of the U.S. Sugar land buyout proposals, a spatial price equilibrium model of the U.S. sugar market is developed. Within this framework, all the benefit-cost ratios calculated show that the benefits are less than the costs. Our analysis uses the concept of an Environmental Equivalent, which is the dollar amount of environmental benefits needed from the Everglades restoration or water quality projects to generate benefits that are as great as or greater than its costs. Also, we consider, within the context of ex ante vs. ex post benefit-cost analysis, the developments to clean up the Everglades since the U.S. Sugar land purchase.

Copyright

References

Hide All
Just, R.E., Hueth, D.L., and Schmitz, A.. The Welfare Economics of Public Policy: A Practical Approach to Project and Policy Evaluation. Cheltenham, UK: Edward Elgar Publishing, 2004.
Kennedy, P.L., and Schmitz, A.. “Production Response to Increased Imports: The Case of U.S. Sugar.” Journal of Agricultural and Applied Economics 41(2009):777-89.
Mather Economics. Measuring the Economic Benefits of America's Everglades Restoration. Palmetto Bay, FL: Study Prepared for The Everglades Foundation, 2010.
Schmitz, A., Kennedy, P.L., and Hill-Gabriel, J.. “Restoring the Florida Everglades through a Sugar Land Buyout: Benefits, Costs, and Legal Challenges.Environmental Economics 3(2012):7287. Internet site: http://businessperspectives.org/component/option,com_journals/task,issue/id,196/jid,9/Itemd,74/ (Accessed January 15, 2013).
The White House. Restoring America's Everglades: Progress and Next Steps for Restoring a Treasured Landscape and Sustaining a Way of Life. Washington, DC, 2012. Internet site: www.whitehouse.gov/sites/default/files/page/files/everglades report13_july_2012.pdf (Accessed January 15, 2013).

Keywords

Accounting for Externalities in Benefit-Cost Measures: An Analysis of a Land Buyout and Associated Projects to Save the Everglades

  • Andrew Schmitz (a1), P. Lynn Kennedy (a2) and Julie Hill-Gabriel (a3)

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed