Avoided cost

Alternative label: 
Avoided damage
Definition: 

Equivalent to an indirect benefit; financial outlays, negative impacts or welfare losses on anyone which are eluded by choosing one specific course of action among different alternatives.
Some natural water retention measures (NWRM) may protect rivers and freshwater sources thus reducing other protection costs, increasing riversメ natural assimilation capacity and making other quality measures redundant. For example, mulching and other NRWM may reduce erosion and enlarge the lifespan of reservoirs while reducing their maintenance costs, etc. These benefits are context-based (and potentially site-specific) and therefore often difficult to identify and quantify. Valuation alternatives range from the estimation of production losses to the cost of defensive and replacement measures (i.e. averting behaviour).

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Related
Relation type: 
Related
Relation type: 
Broader
Last updated: 04 Mar 2015 | Top