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Green Roof Cost-Benefit Analysis: Special Emphasis on Scenic Benefits

Published online by Cambridge University Press:  14 August 2016

Väinö Nurmi ,
Athanasios Votsis ,
Adriaan Perrels  and
Susanna Lehvävirta
Väinö Nurmi*
Affiliation:
Socio-economic Impacts Research, Finnish Meteorological Institute, Erik Palménin aukio 1, PO Box 503, FI-00101, Helsinki, Finland and Department of Environmental Economics and Management, University of Helsinki, Finland, e-mail: vaino.nurmi@fmi.fi
Athanasios Votsis
Affiliation:
Socio-economic Impacts Research, Finnish Meteorological Institute and Department of Geosciences and Geography, University of Helsinki, Finland, e-mail: athanasios.votsis@fmi.fi
Adriaan Perrels
Affiliation:
Climate Service Centre, Finnish Meteorological Institute, Finland, e-mail: adriaan.perrels@fmi.fi
Susanna Lehvävirta
Affiliation:
Finnish Museum of Natural History, University of Helsinki, Finland, e-mail: susanna.lehvavirta@helsinki.fi
*
*e-mail: vaino.nurmi@fmi.fi
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Abstract

This article presents a green roof cost-benefit analysis (CBA). Green roofs are roofs which are partially or completely covered by vegetation. We discuss the benefits and costs of light self-sustaining vegetated roofs. The benefits of the ecosystem services (ES) provided by green roofs can be classified into private and public benefits. We apply the selected valuation methods first in Helsinki, Finland and subsequently explain how results can be transferred to other urban locations. Past research and this study show that private benefits are usually not high enough to justify the expensive investment for a private decision maker. However, when the public benefits are added to the private benefits, social benefits are higher than the costs of green roofs in most cases.

Past research quantified most types of the benefits, excluding scenic and biodiversity benefits. Scenic benefits denote the intangible benefits that people derive from the presence of green space, including at least aesthetic and psychological ones. In this article, special emphasis is placed on the valuation of the scenic benefits; these are among the most challenging benefits to valuate in monetary terms. We employ hedonic pricing theory, implemented via spatial regression models, and green roof implementation scenarios in order to estimate the aggregate willingness to pay for a “unit” of green roof. The results show that the scenic benefits can be a significant attribute in cost-benefit calculations. Yet, the amount of benefits strongly depends on the green roof design.

Keywords

aesthetic valuegreen roofsscenic benefitsurban ecosystem servicesurban planning
Type
Articles
Information
Journal of Benefit-Cost Analysis , Volume 7 , Issue 3 , Fall 2016 , pp. 488 - 522
Copyright
© Society for Benefit-Cost Analysis 2016 

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