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A large and fast growing suburb of Rochester is considering expanding the size of its community park system by purchasing over 500 acres of undeveloped land located near a current park site. Some people have argued against this purchase because it would both use tax revenues to make the purchase and, once purchased, remove the land from the tax rolls thereby eliminating any future tax revenues derived from houses that might be built on the land. Others in the community argue that the expanded park would produce a variety of benefits for the community including enhanced house values that would off-set any lost tax revenues. Assume you have been hired as a natural resource economist to measure the benefits and costs associated with purchasing this land. Your first task is to explain to the leaders of the municipality the different types and categories of values you will consider when measuring the benefits associated with the expanded park. (Describe these values). Your second task is to describe four different approaches to the valuation of changes in the park. (Describe four different approaches to natural resource valuation and the insights each provides on the potential value of expanding the park.) Your third task is to explain alternatives to strictly considering eco-system/natural resource valuation as the basis of making this kind of decision.
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