Cost-based methods - restoration cost, Public Economics

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Cost-based Methods - Restoration Cost

The restoration cost technique takes into account the cost of recreating the ecosystem. For example, degradation of forests results in a reduced flow of forest products and other functions. In order to restore the flow government intervention (in terms of policy implementation and afforestation) is required.

According to the restoration cost method, the value of forest functions is its restoration or recreation cost.

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