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Glossary Environmental Economics / Term

Equivalent Variation

The amount of money one would accept to forgo a benefit such as a price decrease or the amount of income one would pay to avoid a harm such as a price increase. Money required to leave an individual as well off as after the economic change. Amount an individual would be willing to accept to forgo the change, or willing to pay to avert the change.

Permanent link Equivalent Variation - Creation date 2020-04-19


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