2. Acadia National Park A Presentation by James Funk and Dana Snyde

3. 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

5. Market Failure 1 Public Good Open Access to the park Crowded trails Traffic problems Destruction of plants Endangered habitats Town congestion

6. Market Failure 2 Imperfect 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

8. Market Failure 3 Negative Externalities Nearby logging –Creates noise pollution –Diminishes scenic views Industrialization –Air pollution passes through park –Accelerated rates of Eutrophication

9. Possible Policies Entrance Fees at all entrances to the park –Assessed per person –Flat fee for all activities Increase in costs would decrease parks crowdedness Allow only a certain number of tourists in the park at the same time Impact of tourism is minimized

11. 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

12. 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