Economics of natural wonders

Abstract

There are certain features of nature which are generally accepted to be breathtaking. A number of terms are used to describe these resources: unique natural areas, outstanding natural phenomena, national parks, exquisite natural resources and natural wonders and a few examples are the Grand Canyon, Hell’s Canyon, Yosemite, the Sequoia forests, the Yellowstone area, the Everglades, all in the United States; the Great Barrier Reef in Australia; the Fairy Chimneys of Cappadocia in eastern Turkey and the Giant’s Causeway in Northern Ireland. This list is by no means exhaustive. Most nations consider parts of their territory as breathtaking. For example, in England and Wales there are 36 stretches of countryside designated as areas of outstanding natural beauty (Anderson, 1987). Strictly speaking they cannot be put into the natural wonders category as their form is largely the product of human management. A brief description of some natural wonders is given below.

In the case of the Hell’s Canyon project, and quite probably in other similar proposals, both theoretical and empirical considerations suggest that it will not be optimal to undertake even the most profitable development projects there. Rather, the area is likely to yield greater benefits if left in its natural state.

A. Fisher, J. Krutilla, C. Cicchetti