Suppose You Attend a Town Meeting at Which Some Experts

Multiple Choice

Suppose you attend a town meeting at which some experts tell the audience that they have performed a cost-benefit analysis of a proposed transit system that would probably reduce overall air pollution and fossil fuel consumption. The analysis, however, reveals that ticket prices will not cover the cost of operating the new system. As a biologist, you know that if ecosystem services had been included in the analysis, the experts might have arrived at a different conclusion. Which of the following best explains why ecosystem services are rarely included in economic analyses?

A) Federal laws of the United States exclude their inclusion in any cost benefit analysis.
B) They have a low value and are usually not cost effective.
C) Ecosystem services only take into account abiotic factors that affect local environments.
D) Their cost is difficult to estimate, and people take them for granted.