1. 1 Economic Research to Support Development of the Yolo County Natural Heritage Program Dave Sunding Berkeley Economic Consulting and UC Berkeley November 18, 2009

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5. 5 Meeting Habitat Targets Example scenario – 3,000 acres of relevant area – Rice habitat value 0.5 – Grain habitat value 1.0 – Target 1,000 Habitat Units

6. 6 Meeting Habitat Targets Target of 1,000 Habitat Units can be met by: – 2,000 acres of rice (2,000 acres*0.5 Habitat Value) – OR – 1,000 acres of grain (1,000 acres*1 Habitat Value) – OR – Some other combination of rice and grain

7. 7 Example Habitat Targets Success Failure

8. 8 Calculation of Habitat Units

9. 9 Econometric Modeling: Overview Problem of prediction and control Used disaggregated statistical model to predict crop choice at parcel level Dependent variable is crop choice Explanatory variables include: – Prior crop choice – Soil characteristics – Distance measures – Prices

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13. 13 Policies Once cropping patterns are understood, they can be influenced by policy interventions Financial incentives – Temporary – Permanent Voluntary measures