Cost-based methods - relocation cost, Public Economics

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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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