Chapter 1

http://www2.news.gov.bc.ca/news_releases_2005-2009/2006AE0050-001241.htm

This article is about new funding on underwater research by Victoria and BC. According to the story, the province's Leading Edge Endowment Fund provided a total of $42.5 million to two undersea ocean-monitoring observatories, NEPTUNE and VENUS. Also, another $2.25 million is provided to the $4.5 million B.C. Leadership Chair in Marine Ecosystems and Global Change, which is now held by Kim Juniper, a marine ecologist. Overall the purpose of all this is to investigate the effects of climate and pollution on the oceans and our water supply.

This article can be observed from various different points of view in terms of economics. Firstly, as a resource, water is becoming more and more of a scarce resource. Water is suppose to be a renewable resource, but over time, humans have polluted a huge amount of the oceans. Some examples of pollution include sewage wastes and oil spills. Water has always been underestimated in terms of value, due to its abundance. However, in recent years, many have finally notice the value of water. They finally realize we may be losing what everyone needs to survive. If this keeps up, the price of water will go higher and higher, until we can somehow find a substitute for water. That's why countries like Canada are becoming more conscious about our water supply and justifies the importance of this research and the money put in.

As for costs, direct cost is obvious. $42.5 million + $2.25 million + $4.5 million = close to $50 million put out by the government and tax payers. On the other hand, they are many opportunity costs. For one, it could be invested on youth and into education, such as building schools and supporting tuition fees. By doing so, they can produce more tax payers and less people on the streets, which create a better economy in Canada, and generate more income for the country and the government. Another investment they could have used the money for would be the exploration of oil. This huge sum of cash could have been used to find more natural resources, which could be sold for tons of money. This is especially true for oil, due to the high demand of this non-renewable resource.

On the other hand, these opportunity costs might actually be overshadowed by potential costs that may arise if this research wasn't done. For instance, if we don't find out more about the effects of pollution on our water supply soon enough, it may cost a lot more to fix the problems that could arise later on in the future.

This in my opinion should be first priority and I feel the government has made the right choice for the use of this money. Although I feel the government could aid students a little more in money troubles, I think protecting our environment is a little more important. Threats such as global warming and global dimming could affect the existance of our race. And afterall... What can be more important for life than water?... besides oxygen?