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defensive expenditure

Expenditures incurred to mitigate or avoid the external costs of the general growth process of production and consumption. Defensive environmental cost are expenditures for preventing or neutralizing a decrease in environmental quality, as well as for compensating for or repairing negative effects (human health and welfare, and other damage to material systems) of environmental deterioration. Their deduction from NDP is sometimes suggested to obtain a measure of environmentally adjusted economic welfare. It is not recommended in the SEEA. See defensive environmental costs.

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