Explain how the incentives will affect the local villagers


Problem

You are learning about negative externalities and environmental protection. One activity that qualifies for negative externalities is the poaching of animals in several countries throughout the world. You will analyze the topics of negative externalities and environmental protection by completing the learning journal.

I. Choose one of the approaches listed below on protecting elephants from poachers in African countries.

i. The government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all local people to enter the parks or to injure either the elephants or their habitat in any way.

ii. The government sets up national parks and designates ten villages around the park's edges as official tourist centers that become places where tourists can stay and bases for guided tours inside the national park.

II. Depending on the approach you have chosen (A or B), explain how the incentives will affect the local villagers, who are often very poor.

III. Which approach (A or B) seems more likely to help the elephant population?

IV. Discuss the practice of poaching elephants and the need for environmental protection?

V. Explain how the practice of poaching elephants is a negative externality?

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Microeconomics: Explain how the incentives will affect the local villagers
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