Question

In writing about the increased popularity of national parks in the United States, such as Yosemite, Yellowstone, and the Grand Canyon, environmental economist Margaret Walls wrote: When one person's visit to a park doesn't appreciably diminish the experience for others, the fee to use the park should be zero. That doesn't apply when the public good starts to experience congestion problems ... the Park Service should ... [charge] a significantly higher fee at the most popular parks during the summer months. Are Yosemite and other national parks public goods? Briefly explain. Source: Margaret A. Walls, "Protecting Our National Parks: Entrance Fees Can Help," Resources, No. \(193,\) Fall \(2016 .\)

Short answer

National parks like Yosemite and others can be considered public goods when they are not congested because they are non-excludable and provide non-diminished benefits. However, when congestion occurs, they become more alike to common goods which require management of resources, such as the imposition of entrance fees in peak times.

Step-by-step solution

Define public goods

A public good is an item whose consumption is not decided by the individual consumer but by the society as a whole, and which is financed by taxation. The two main characteristics of public goods are non-excludability, which means it's not possible to exclude people from using the good, and non-diminished benefit, which means the cost does not increase with the quantity of consumption.

Apply definition to national parks

According to the definition, in the absence of congestion, national parks can be considered public goods because they are non-excludable and provide non-diminished benefits. Everyone is allowed to use them, and one person enjoying the park does not interfere with another person's enjoyment of it.

Consider congestion

However, as stated by Margaret Walls, when parks start experiencing congestion, they no longer fully align with the concept of a public good. During peak times, someone's enjoyment of the park could detract from another person's experience, introducing the concept of rivalry into the scenario.

Conclusion

Therefore, while national parks like Yosemite and others have characteristics of public goods, they are not pure public goods, as they can become congested. When this occurs, they become more similar to a common good, which gives rise to the need for management of resources, such as the introduction of entrance fees during peak times.

Key concepts

National Parks

National parks serve as exceptional areas of natural beauty and ecological importance. They are designated to preserve vast landscapes and unique ecosystems for the enjoyment and education of the public. These protected areas are significant for both their natural and cultural resources. They offer:

• Scenic views and opportunities for outdoor recreation like hiking and camping
• Protection for wildlife and plant species
• Educational programs that enrich visitors' understanding of nature and conservation

National parks such as Yosemite and Yellowstone are open to everyone, supporting the idea of equal access to natural wonders. However, managing these areas responsibly is crucial to balancing environmental protection with public enjoyment.

Congestion in Public Goods

Congestion occurs when a public good is overused to the point where it becomes less enjoyable for other users. In the context of national parks, this can happen when too many visitors crowd the park, overwhelming its capacity. The primary concern with congestion is:

• Increased noise levels, which can disrupt wildlife and spoil visitor experience
• Wear and tear on natural trails, which could harm the environment
• Potential for littering and pollution, damaging the pristine conditions

Managing congestion often requires strategic measures, such as introducing entrance fees during peak seasons. This approach not only helps to limit the number of visitors but also generates funds necessary for park maintenance and conservation.

Economic Theory of Public Goods

The economic theory of public goods identifies two core properties: non-excludability and non-rivalry. This means that:

• Non-excludability: It’s difficult to prevent people from using the good. For example, clean air is a public good because you can't stop someone from consuming fresh air.
• Non-rivalry: One person's consumption of a public good does not reduce its availability to others. For instance, listening to a broadcast does not limit others from doing so as well.

Applying this theory to national parks reveals that they fit the definition assuming no congestion is present. It underscores the importance of understanding these dynamics to preserve the benefits of public goods while addressing challenges like congestion.

Margaret Walls

Margaret Walls is a respected environmental economist. She has contributed significantly to discussions on sustainable management of public resources. Her insights, particularly about national parks, emphasize:

• The importance of balancing accessibility and preservation
• The practicality of using economic tools like entrance fees to manage congestion
• Strategies to ensure that public goods serve their purpose sustainably

Walls' work provides valuable guidance for policymakers and environmentalists. By advocating for thoughtful management practices, Walls inspires a broader understanding of the integral role national parks play in our ecosystem and our economy.