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An economic policy analysis of Northern Kenya rangelands with reference to pastoralism and conservation tourism. A long thread.
In economics, we value resources using the opportunity cost principal. 1/18
In economics, we value resources using the opportunity cost principal. 1/18
Simply put, opportunity cost is what is forgone in a trade-off e.g when resources are appropriated for one use over another. When farm land is acquired for for a school, we do not compensate the farmer based on the education services but rather for the forgone agricultural income
Similarly, if a certain rangeland is to be set aside for conservation, we do not need to know the value of the wilderness—we’ve already agreed that nature is priceless. What we need to value and compensate is what the land owners, in this case pastoralists, stand to lose.
