Acadia National Park

A Presentation by James Funk and Dana Snyde

Basic Facts

• Located on Mt. Desert Island Maine

• Over three million tourists a year

• 46,000 acres

• Home to several thousand species

• Donated by the Rockefellers

• Officially declared a national park in 1929

• Premier tourist arena in Maine

Market Failure 1Public Good

• Open Access to the park

• Crowded trails

• Traffic problems

• Destruction of plants

• Endangered habitats

• Town congestion

Market Failure 2Imperfect Information

• No research was done to determine the appropriate size of the park– Park size was created randomly through land

donations and available land for purchase

• Lack of guidance for visitors on how to properly behave while on park grounds

Market Failure 3Negative Externalities

• Nearby logging– Creates noise pollution– Diminishes scenic views

• Industrialization– Air pollution passes through park– Accelerated rates of Eutrophication

Possible Policies

• Entrance Fees at all entrances to the park– Assessed per person– Flat fee for all activities

› Increase in costs would decrease park’s crowdedness

• Allow only a certain number of tourists in the park at the same time

› Impact of tourism is minimized

More Possible Policies

• Limit number of trails available to public– Achieve wilderness and wildlife protection

• Increased educational efforts– provide information pamphlets at trail heads– Mark important trails

• Limit amount of pollution from nearby industrialization– direct regulation, economic incentives

Conclusion

• Use a conjoint analysis to construct policies that will maximize net benefits

• Implementation of polices is difficult because of political barriers

• Please visit this really neat-o place