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The spatial pattern of landscape reconstruction makes a substantial difference toenvironmental outcomes. We develop a spatially explicit bio-economic model that optimisesthe reconstruction of a heavily cleared landscape through revegetation. The model determinesthe spatial priorities for revegetation that minimises economic costs subject to achievingparticular improvements in habitat for 29 woodland-dependent bird species. The studyfocuses on the Avoca catchment (330 thousand ha) in North-Central Victoria. Our modelincorporates spatial pattern and heterogeneity of existing and reconstructed vegetation types.The revegetation priorities are identified as being: sites in the vicinity of existing remnants,riparian areas, and parts of the landscape with diverse land uses and vegetation types. Optimalreconstruction design is affected by opportunity costs due to the loss of agriculturalproduction and the costs of revegetation.1 Centre for Environmental Economics and Policy, School of Agricultural and Resource Economics, Universityof Western Australia, Crawley, WA, 60092 Department of Primary Industries, Rutherglen, RMB 1145 Chiltern Valley Rd, Rutherglen, Victoria, 36853 North Central Catchment Management Authority, PO Box 18, Huntly, Victoria, 3551
