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Related Goods Approaches - Direct Substitute Approach
In this case the value of a similar good is used for valuation of the natural resource. For example, the value of fuel wood collected by villagers’ from the nearby forests. Here a close substitute would be fuel wood bought from the market or even the value of kerosene or charcoal equivalent to the fuel wood collected.
The accuracy of this method depends upon the extent to which the natural resource and the marketed product used as substitute are similar.
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