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Snowmobiling in the Adirondacks: Market Failures The following is a list of market failures present in the Adirondack snowmobiling issue. These market failures cause "gaps" between the marginal benefits and marginal costs of snowmobiling. By internalizing market failures in the form of restrictions on snowmobiling (permit fees, age limits, taxes, subsidies, number limits, licenses), riders take into account the social marginal cost of their activity and we can arrive at a socially acceptable equilibrium. Non-excludable/Non Rival 1. Snowmobiling is non-excludable and non-rival for snowmobilers because Adirondack Park does not charge an entrance fee and one snowmobiler does not preclude another snowmobiler from using a trail, aside from overcrowding. This is an example of a pure public good. 2. When dealing with non-mechanized users of the park (hikers, ice fisherman, cross country skiers, etc.) snowmobiling remains non excludable, but also rival because snowmobiles cause damage to trails, therefore decreasing the overall enjoyment of other users. This would be an example of an open access resource. Positive Externalities 1. As a result of spending time in the Adirondacks, snowmobilers have a heightened sense of environmental awareness and a desire to maintain trail aesthetics. Snowmobile club members often volunteer time to clean up trails. Negative Externalities 1. The exhaust emitted by snowmobiles, a combination of carbon monoxide and carbon dioxide, pollutes the air in the park, making it unsafe for plants, animals, and humans. Parks where snowmobiling is extremely popular tend to have higher than normal carbon monoxide counts, as at Yellowstone's West Gate, which has the highest count in the nation. 2. Spilled oils and gasoline seep into the water table damaging fresh water sources. 3. Snowmobiles produce a large amount of noise, disturbing residents and other users of the park. 4.The physical environment is damaged by the tracks and skis of the snowmobiles, causing great harm to fragile ecosystems and habitats.
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