The Effects of Acid Rain
in the Adirondacks
Introduction
Market Failures
Conjoint Analysis
Introduction
The Adirondacks is a mountainous region of upper New York
State with vast areas of forests, wildlife, lakes, and is also the location of some New
York City’s reservoirs. There have been recent concerns about the emissions released
from midwestern industries and utilities that are being carried to the Adirondacks region
via wind patterns. These pollutants carried into the region cause acid rain to develop
which has affected the mountain areas of the region. There are deep concerns about the
long-term effects of acid rain on the region’s wildlife and lakes. It has been
reported that the high elevations of the Adirondacks are beginning to show signs of
irreversible destruction, especially in terms of the inability of lakes to support life.
Although government regulations have implemented emissions reduction programs within the
last decade, reports show that there have been no improvements in the water quality in the
mountains. It is estimated that about 25% of the region’s lakes and ponds have become
too acidic to support life and if further reductions in emissions do not occur then about
50% of the lakes and ponds will be affected in an estimated 40 years.
Market
Failures
 | Mid-West by fossil fuel burning plants release large amount
of SO2 and NOX in the atmosphere. |
| These chemicals react in the air and form acid rain. |
| Externalities characterize this market failure.
 | Mid-west power plants do not have to internalize the cost of
acid-rain since the effects are several hundred miles down wind. |
|
The costs and externalities of acid rain
| 58 percent of Adirondack streams are too acidic for game
fish. |
| Acidity of lakes and rivers continue to rise. By 2040 the EPA
projects that half of the Adirondacks’ 2,800 lakes and ponds won’t be able to
sustain life. |
| The Adirondacks is declining in popularity with fishermen. |
| Rain in the Adirondacks has an acidity of pH 4.5. Trout die
at pH 6 and lower. Pike die at pH 5 and below. |
| Streams and ponds are often crystal clear since they are
essentially sterile. |
Conjoint
Analysis
Respondents are asked to rank the following scenarios.
Essentially, these will vary among questionnaires because they are randomly generated
combinations of attributes.
| Status quo |
| 25% improvement in aquatic populations, $.02 gas tax,
stocking certain fish species, permutation of other attributes |
| 25% improvement in forest populations, 25% improvement in
aquatic populations, $.05 gas tax, planting forests and stocking certain fish species,
alternative transportation, permutation of other attributes |
| 50% improvement in aquatic populations, $.05 gas tax, water
treatment and stocking certain fish species, permutation of other attributes |
| 50% improvement in forest populations, 25% improvement in
aquatic populations, $.05 gas tax, planting forests and logging prohibition, alternative
transportation, permutation of other attributes |
| 50% improvement in forest populations, 75% improvement in
aquatic populations, $.10 gas tax, planting forests, water treatment and stocking all fish
species, permutation of other attributes |
After ranking the scenarios, respondents are asked to answer
the following questions. The goal here is to obtain information about variables that may
influence respondents’ answers.
| Into what range does the respondent’s income fall? |
-Individuals with higher incomes often manifest a higher
willingness to pay.
| What is the respondent’s level of education? |
-The extent to which the respondent is informed about the
pertinent issues influences his or her responses.
| How close does the respondent live to the Adirondack Park?
For how long has the respondent lived within this vicinity? |
-Generally, individuals who live closer to the park would be
more concerned with the conditions therein.
| Compared to other concerns (such as increased unemployment
for those in the electric utilities, lumber, and fishing industries), how important is the
health of the aquatic and forest systems in the Adirondack Park? |
-This question should remind the respondent that there are
nonmonetary costs associated with an abatement policy in order to avoid overly idealistic
answers.
| How often does the respondent use the park for hiking,
fishing, swimming, or other recreational uses? |
-Individuals who use the park resources frequently will
probably be more concerned with the conditions of it as compared to those who do not visit
it.
| On average, how many miles per week does the respondent
drive? |
-Those who drive more will be more likely to resist the
proposition of a gas tax. They will also be less likely to undertake voluntary driving
reductions.
Policy Options
| Reorganize transferable permit system -- affix expiration
dates to permits so that they cannot be banked. |
| Encourage fuel-efficiency for cars and light trucks so reduce
toxic emissions. |
| Generate public awareness so that the public knows the
consequences of their actions. |
|
