An economic view on the costs and benefits of forest restoration

This chapter focuses on assessing the costs and benefits of forest restoration. It provides key findings and knowledge gaps drawing on a review of available studies and data, assessing the costs and benefits of forest restoration across six different restoration options. It looks at both financial analysis of the costs incurred and benefits accrued by private actors or enterprises and wider economic analysis of the returns of forest restoration to society at large. It shows that while financial costs and benefits vary widely across and within forest restoration options, almost all forest restoration options are financially attractive. Natural regeneration options are the least costly options, followed by tree plantations. Agroforestry systems are most costly, requiring higher upfront investments, yet may yield higher economic and ecological benefits depending on the agroforestry system. There are several trade-offs associated with forest restoration, mainly regarding the financial, socioeconomic, and environmental benefits of restoration.

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