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Cost-based methods - Relocation Cost
This method is applicable in situations where natural environment in a particular area is put to some alternative use. For example, the cost of establishing a new protected forest area. In this method, the flow of ecological functions is maintained as in restoration cost and replacement cost techniques.
The difference, however, is that instead of recreating ecological functions in the vicinity, the inhabitants are moved to a different locality.
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A change in the legal statute may be able to force an equilibrium if it leads to a new equilibrium which implies some revised belief which sustains the equilibrium. Tirole (1996)
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