The Price of Pandanomics

Last week, Xiao Qi Ji celebrated his third birthday at Washington D.C.’s National Zoo. For the “party,” zoo chefs prepared a fruitsicle made from fruit juices and veggies.

His last birthday here, Xiao Qi Ji and his parents will return to China by the beginning of December. While they will be missed, the upside is spending lots less.

Giant Pandanomics

For starters, per panda, zoos have to pay an annual rental fee to China that could be $1 million a year. Then, it costs an extra $400,000 if any cubs are born (and they must be returned–though not immediately). In addition, just the enclosure could run $8 million. And, we have not even gotten to the huge quantity of bamboo they eat every day. It turns out that because pandas are picky, zoos need to give them twice what they consume. That adds up to 12 kilograms a day (a whopping 26 pounds). Then also, there will be medical care and the upkeep they require. Costing five times as much as the elephants, pandas are a zoo’s most expensive resident.

Our Bottom Line: Zoo Economics

As businesses, zoos are unusual. Except for panda fees, they do not buy their inventory. Instead, since the 1970s, they barter and borrow their wildlife. The goal is to avoid putting a price tag on an animal.

But still zoos need money for staff, maintenance, food, and other typical business expenses. Meanwhile, also like typical businesses, they try to optimize revenue from admissions. According to the BBC, the Adelaide Zoo in Australia initially had a pop in revenue after the pandas arrived. But then, it returned to normal.

So, as economists, we can ask if pandas are worth it. Thinking of tradeoffs, we hit the problem of the unquantifiable. There is huge value in the panda conservation that zoo fees provide China. Also, we cannot place a dollar value on the joy of seeing pandas play:

My sources and more: If you are interested in celebratory foods, the National Zoo has the recipes for a sicle assortment. Then, Smithsonian and Medium and Forbes have more facts on panda loans. And finally, completing the picture, the BBC told about the cost.