Assn5 - Conservation Banking Consider the map below of a...

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Conservation Banking Consider the map below of a coastal region that is home to an endangered species, the California Tiger Salamander. Each box in the map represents a property and each property is described by two parameters, the development potential (D) and the habitat quality (CTS). D represents the profit (after costs) associated with development (such as building houses) – in thousands of dollars. CTS represents an index of habitat quality for the Tiger Salamander (a higher number is higher quality habitat). You work for the Fish and Wildlife Service and your boss has asked you to investigate establishing a conservation banking program in the region represented on the map. The bank would define a CTS habitat credit and allow landowners to sell credits to the bank of buy credits from the bank. 1 1. Considering the landscape described in the map above, a. how much would the landowner in the upper left (D=120, CTS=2) be willing to pay (WTP) on a per-credit basis, for the right to develop his or her entire property? b.
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This note was uploaded on 08/06/2008 for the course ESM 204 taught by Professor Kolstad during the Winter '08 term at UCSB.

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Assn5 - Conservation Banking Consider the map below of a...

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