Skip to main content
SpringerLink
Log in

The Challenges of Valuing Urban Nature: Accounting for Urban Ecosystem Services Within the Framework of a Cost-Benefit Analysis of Nature-Based Investments

  • Conference paper
  • First Online:
Innovation in Urban and Regional Planning (INPUT 2021)

Part of the book series: Lecture Notes in Civil Engineering ((LNCE,volume 146))

Included in the following conference series:

Abstract

Urban nature delivers proven positive effects to people living in cities from a social, environmental and financial perspective. The role of urban nature in contributing to new sustainable urban policies has been recognised as crucial in the planning agenda of most cities across the world. With effective nature-based investments, the benefits of urban nature are highlighted and enhanced. If decision makers’ and stakeholders’ understanding of the importance of the connections between urban nature and human health and wellbeing is to be improved, it is necessary to provide a more correct, explicit, and appropriate framework for valuing natural and non-market goods and services. This study argues for an approach aimed at integrating Cost-Benefit Analysis (CBA) with Urban Ecosystem Services (UES) to deliver a more effective economic valuation of the net benefits of nature-based investment. We do this by exploring different features of CBA and UES to identify and highlight different money-based valuation methods for putting a price on urban nature.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.00
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Atkinson G, Mourato S (2006) Cost-benefit analysis and the environment: recent developments. OECD, Paris

    Google Scholar 

  • Bouwma I, Schleyer C, Primmer E, Winkler KJ, Berrye P, Young J, … Vadineanu A (2018) Adoption of the ecosystem services concept in EU policies. Ecosyst Serv 29:213–222

    Google Scholar 

  • Boyd J, Banzhaf S (2007) What are ecosystems? Ecol Econ 63:616–626

    Article  Google Scholar 

  • Boyle KJ (2003) Introduction to revealed preference methods. In: Champ PA, Boyle KJ, Brown TC (eds) A primer on nonmarket valuation. Dordrecht, Kluwer, pp 259–268

    Chapter  Google Scholar 

  • Costanza R, d’Arge R, de Groot R, Farber S, Grasso M, Hannon B, … van den Belt M (1997) The value of the world’s ecosystem services and natural capital. Nature 387:253–260

    Google Scholar 

  • Daily GC, Polasky S, Goldstein J, Kareiva PM, Mooney HA, Pejchar L, … Shallenberger R (2009) Ecosystem services in decision making: time to deliver. Frontiers Ecol Environ 7(1):21–28

    Google Scholar 

  • de Groot RS, Alkemade R, Braat L, Hein L, Willemen L (2010) Challenges in integrating the concept of ecosystem services and values in landscape planning, management and decision making. Ecol Complex 7:260–272

    Article  Google Scholar 

  • de Groot RS, Wilson MA, Boumans RMJ (2002) A typology for the classification, description and valuation of ecosystem functions, goods and services. Ecol Econ 41:393–408

    Article  Google Scholar 

  • Demuzere M, Orru K, Heidrich O, Olazabal E, Geneletti D, Orru H, … Faehnle M (2014) Mitigating and adapting to climate change: multi-functional and multi-scale assessment of green urban infrastructure. J Environ Manag 146:107–115

    Google Scholar 

  • Evers CR, Wardropper CB, Branoff B, Granek EF, Hirsch SL, Link TE, … Wilson C (2018) The ecosystem services and biodiversity of novel ecosystems: a literature review. Global Ecol Conserv 13:e00362

    Google Scholar 

  • GĂłmez-Baggethun E, Barton DN (2013) Classifying and valuing ecosystem services for urban planning. Ecol Econ 86:235–245

    Article  Google Scholar 

  • HansjĂĽrgens B (2004) Economic valuation through cost-benefit analysis–possibilities and limitations. Toxicology 205(3):241–252

    Article  Google Scholar 

  • Kaplan R (1983) The role of nature in the urban context. In: Altman I, Wohlwill JF (eds) Behavior and the natural environment. Springer, New York, NY, pp 127–216

    Chapter  Google Scholar 

  • Lepczyk CA, Aronson MF, Evans KL, Goddard MA, Lerman SB, MacIvor JS (2017) Biodiversity in the city: fundamental questions for understanding the ecology of urban green spaces for biodiversity conservation. Bioscience 67(9):799–807

    Article  Google Scholar 

  • Ma J, Henneberry J, Privitera R (2020) Cost benefit analysis of proposed green interventions to promote mental health and wellbeing (research report). Retrieved from improving wellbeing through urban nature website: http://iwun.uk/findings/

  • Maland MM (2012) The return on investment of parks and open space. Doctoral dissertation, University of Georgia (USA)

    Google Scholar 

  • Millennium Ecosystem Assessment (MA) (2005) Ecosystems and human wellbeing: a framework for assessment. Island Press, Washington DC

    Google Scholar 

  • MĂĽller F, Burkhard B (2012) The indicator side of ecosystem services. Ecosyst Serv 1(1):26–30

    Article  Google Scholar 

  • Niemeijer D, de Groot RS (2008) Framing environmental indicators: moving from causal chains to causal networks. Environ Dev Sustain 10(1):89–106

    Article  Google Scholar 

  • Nikodinoska N, Paletto A, Pastorella F, Granvik M, Franzese PP (2018) Assessing, valuing and mapping ecosystem services at city level: the case of uppsala (Sweden). Ecol Model 368:411–424

    Article  Google Scholar 

  • Olander LP, Johnston RJ, Tallis H, Kagan J, Maguire LA, Polasky S, … Palmer M (2018) Benefit relevant indicators: ecosystem services measures that link ecological and social outcomes. Ecol Indic 85:1262–1272

    Google Scholar 

  • ONS (Office for National Statistics) (2017) Principles of natural capital accounting. Retrieved on 16 April 2019 from https://www.ons.gov.uk/economy/environmentalaccounts/methodologies/principlesofnaturalcapitalaccounting

  • Panduro TE, Veie KL (2013) Classification and valuation of urban green spaces—a hedonic house price valuation. Landscape Urban Plann 120:119–128

    Article  Google Scholar 

  • Pearce DW, Atkinson G, Mourato S (2006) Cost-benefit analysis and the environment: recent developments. OECD, Paris

    Google Scholar 

  • Roy S, Byrne J, Pickering C (2012) A systematic quantitative review of urban tree benefits, costs, and assessment methods across cities in different climatic zones. Urban For Urban Greening 11(4):351–363

    Article  Google Scholar 

  • Sartori D, Catalano G, Genco M, Pancotti C, Sirtori E, Vignetti S, Bo C (2014) Guide to cost-benefit analysis of investment projects. Economic appraisal tool for cohesion policy 2014–2020

    Google Scholar 

  • Sundberg S (2004) Replacement costs as economic values of environmental change: a review and an application to swedish sea trout habitats. Beijer International Institute of Ecological Economics

    Google Scholar 

  • TEEB (2010) The economics of ecosystems and biodiversity ecological and economic foundations. In: Kumar P (ed) Earthscan, London and Washington

    Google Scholar 

  • Tempesta T (2010) The recreational value of urban parks in the Veneto region (Italy). Recreation, tourism and nature in a changing world, p 236

    Google Scholar 

  • Tempesta T (2015) Benefits and costs of urban parks: a review. Aestimum 67:127

    Google Scholar 

  • Tzoulas K, Korpela K, Venn S, Yli-Pelkonen V, KaĹşmierczak A, Niemela J, James P (2007) Promoting ecosystem and human health in urban areas using green infrastructure: a literature review. Landscape Urban Planni 81(3):167–178

    Article  Google Scholar 

  • Van der Pol T, Bos F, Romijn G (2017) Distributionally weighted cost-benefit analysis: from theory to practice. CPB Discussion Paper 364. CPB Netherlands Bureau for Economic Policy Analysis, The Hague, The Netherlands

    Google Scholar 

  • Voigt A, Wurster D (2015) Does diversity matter? The experience of urban nature’s diversity: case study and cultural concept. Ecosyst Serv 12:200–208

    Article  Google Scholar 

  • Wegner G, Pascual U (2011) Cost-benefit analysis in the context of ecosystem services for human well-being: a multidisciplinary critique. Glob Environ Change 21(2):492–504

    Article  Google Scholar 

  • WHO, CBD Secretariat (2015) Connecting global priorities: biodiversity and human health: a state of knowledge review. World Health Organization

    Google Scholar 

Download references

Acknowledgements

This paper is based on research undertaken as part of the IWUN project funded by the Natural Environment Research Council, ESRC, BBSRC, AHRC & Defra [NERC grant reference number NE/N013565/1]. The authors are grateful for NERC’s support.

Author information

Authors and Affiliations

  1. University of Auckland, 26 Symonds Street, Auckland, 1010, New Zealand

    Jing Ma

  2. University of Sheffield, Western Bank, Sheffield, S10 2TN, UK

    John Henneberry

  3. University of Catania, Via S. Sofia 64, 95123, Catania, Italy

    Riccardo Privitera

Authors
  1. Jing Ma
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. John Henneberry
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Riccardo Privitera
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Jing Ma .

Editor information

Editors and Affiliations

  1. Department of Civil Engineering and Architecture, University of Catania, Catania, Italy

    Daniele La Rosa

  2. Department of Civil Engineering and Architecture, University of Catania, Catania, Italy

    Riccardo Privitera

Rights and permissions

Reprints and permissions

Copyright information

© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Ma, J., Henneberry, J., Privitera, R. (2021). The Challenges of Valuing Urban Nature: Accounting for Urban Ecosystem Services Within the Framework of a Cost-Benefit Analysis of Nature-Based Investments. In: La Rosa, D., Privitera, R. (eds) Innovation in Urban and Regional Planning. INPUT 2021. Lecture Notes in Civil Engineering, vol 146. Springer, Cham. https://doi.org/10.1007/978-3-030-68824-0_9

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-68824-0_9

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-68823-3

  • Online ISBN: 978-3-030-68824-0

  • eBook Packages: HistoryHistory (R0)

Publish with us

Policies and ethics

Search

Navigation