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Calculate the opportunity cost of preserving Nigula bog as a nature reserve Use the data below assuming the next-best alternative use of Nigula bog is using peat as an energy source The peat deposit

Calculate the opportunity cost of preserving Nigula bog as a nature reserve. Use the data below assuming the next-best alternative use of Nigula bog is using peat as an energy source The peat deposit of Nigula bog covers about 2,000 hectares. The annual harvest from one hectare is about100 tonnes and one tonne of peat contains 3 megawatt hours (MWh) of energy Assume that peat is sold on a competitive market and the market price is Euro 30 per tonne. The nearby power plant buys the annual peat production and earns Euro 50 per MWh from sales of electricity and heat. Other inputs cost Euro 10 per MWh

Apr 30 2020 View more View Less

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