Restoration of degraded ecosystems is essential for having a stable climate, reducing weather extremes and disease burden, producing enough food to feed growing populations, and generally keeping the world livable. However, we are currently rapidly degrading ecosystems worldwide, thus destroying the very basis of life. There is a major gap between what investments are needed to restore degraded ecosystems and prevent further degradation and what is actually being invested. In addition, most governments are still learning how to design and implement ecosystem restoration policies that are effective and efficient. Ecosystem restoration should be among our main scientific endeavors. This review fills a critical gap in the existing literature by providing a theory-informed understanding of the findings emerging from this highly policy-relevant strand of resource economics. The article also suggests key areas for future research.

Expected final online publication date for the Annual Review of Resource Economics, Volume 15 is October 2023. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.