In order to distinguish social from private values let Vwp = the discounted value of the rental income from leasing an acre of hunting land, or the private value of an acre of marsh to the wetlands owner

_ R — C d — Cw(1 + r y ’ where R is the price that an acre of hunting land currently commands in the market, and Cd and Cw are nuisance and main­tenance costs, as defined previously. The assumption that Cd and Cw are zero is retained.1 It will be seen later that this assumption strengthens the argument.Let the discounted value of the income stream from an acre of drained, permanent wetland, when output is evaluated with subsidized prices be

1 See chapter 2, pp. 27 and 33 for the discussion of Cd and Cw. W does not appear in the expression for the private value of wetlands, since it is not a value that can be appropriated by the property owner.