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This question is not easily answered because of the terms habitat and environment.

Habitat is simply a place where and organism lives or a place where it utilizes a component for it's life cycle. Thus, everything is habitat for something.

Likewise, environment is a broad term that everything in a certain area. Often considered to mean the natural environment, it may also include the built (human) environment or more recently a Gaia-like principle encompassing everything without defining specific parameters.

When an area is determined to be in need of restoration, many questions are asked such as: What components need restoring and why? What are the end goals in this restoration? What should the final restoration resemble (usually a time period or a biodiversity level? What is the future succession of this site/landscape? How large (at what scale) is this restoration project?

If the questions are addressed fully and to the best of available practices, habitat restoration meets the goals identified at the beginning of the restoration process. This frequently assists the localized (site specific) environment through the strengthening of biodiversity and biotic health.

On larger projects (such as expansive marshes, estuaries or grasslands) the impacts of a successful restoration are farther reaching and more likely to be successful/productive for the long term. Small sites have impacts as well, but are less buffered from outside forces and may have a greater probability of long term failure.

When properly executed, habitat restoration helps the environment by restoring/increasing biotic health within that defined area.

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