In this paper, a model of environmental restoration is designed that incorporates the risk and resiliency effects associated with environmental restoration. The issue of how much restoration effort to undertake is then looked at in an inter-temporal cost-benefit analysis setting. When risks of failure may be stock dependent, the question of how much restoration versus how often becomes relevant, as the costs of continual but lower restoration must be weighed against the costs of less frequent by larger restorative efforts leading to a higher environmental quality. This also determines under what circumstances a more resilient state is desirable given the higher costs associated with its attainment. Numerical simulations reinforce the analysis.
International Agricultural Trade and Policy Center Working Paper Series