VALUATION AND EVALUATION OF GREEN INVESTMENTS

ON THE REGIONAL LEVEL

Dr. Karsten Rusche, Christine Rymsa-Fitschen, Jost Wilker

2

Agenda

1. The Value of Green Infrastructure in urban

Quality of Life

2. Input-Output and Local Multiplier Analyses

3. Conclusion

3

1. The Value of Green Infrastructure in

urban Quality of Life

Economic Evaluation - „Quality of Life“ - Rationale

City A City B

Wages A Wages B

Rents A Rents B==

Amenities A Amenities B=

4

City A City B

Wages A Wages B

Rents A Rents B

><

Economic Evaluation - „Quality of Life“ - Rationale

Amenities A Amenities B<

5

Urban Green as an amenity: Accessibility

urban green spaces settlement area

Our research approach focuses on the accessibility of urban green spaces (in terms of “green infrastructure”).

This is hardly displayed only by the pure amount of green spaces.

Idea:settlement area within a 300m radius („as

the crow flies“) around urban green spaces

total urban settlement area„Greenness“ =

6

Urban Greenness = 84,2 %

Urban Greenness – GIS approach

7

Urban Greenness – Results for the Urban Greenness

8

9

Regression results (scheme)

31%

46%

8%

14%

urban greennessregional GDP (economic conditions)population density (urban fabric/housing market)intercept

10

2. Input-Output and Local Multiplier Analyses

11

Input-Output Tables: Basis of analyses

Source: Wang et.al (2006)

Input-Output-tables are a statistical tool to show the complex interrelations between economic sectors.

For each value in output the table lists the amount of input needed from each relevant sector.

selling to

buying from

12

Input-Output Tables: Rationale of economic Stimulus

1

direct effect

2 indirect effect

3

induced

effect

Regional Economy1. Investments bring external money

into the regional economy. Contractors are paid for their work (direct effect).

2. To do their work, contractors need to buy intermediate goods and pay their employees (indirect effect).

3. Employees spend their income for consumption goods (induced effect).

4. An iterative, but diminishing circle continues.

The VALUE investments

13

1. Bruges - Land Use Plan “A Green Cycle Belt for Bruges”

2. Verviers - Terraces of “Grandes Rames” Street and “Marie-Henriette” Park

3. Sheffield - The Wicker, Urban Green Improvements

4. Manchester - Whithworth Street West Tree Planting

5. Esslingen - Cycle and Pedestrian Path along the Neckar River

4

3

2

1

5

VALUE Input-Output Analyses: Results

14

1. Bruges (BE) 2. Verviers (BE) 3. Sheffield (UK) 4. Manchester (UK) 5. Esslingen (DE)

1

direct effect

2 indirect effect

3

induced

effect

1

direct effect

2 indirect effect

3

induced

effect

1

direct effect

2 indirect effect

3

induced

effect

1

direct effect

2 indirect effect

3

induced

effect

1

direct effect

2 indirect effect

3

induced

effect

1.73 1.40 1.94 1.86 1.75

VALUE Local Multiplier Analyses: Results

15

1. Verviers (BE) 2. Manchester (UK) - material

3. Manchester (UK) – labour +

material)

4. Manchester (UK) – all information

1

direct effect

2 indirect effect

3

induced

effect

1

direct effect

2 indirect effect

3

induced

effect

1

direct effect

2 indirect effect

3

induced

effect

1

direct effect

2 indirect effect

3

induced

effect

2.42 1.41 1.16 1.04

Conclusions

Quality of Life:

Urban greenness has a significant and positive impact on urban Quality of Life.

People value green open spaces as an urban amenity and they are willing to pay for it.

It became also evident, that the pure amount of urban green is not a sufficient measure of peoples’ perception of green infrastructure.

Input-Output Analysis:

Investments in green infrastructure show significant stimuli for regional economies.

Every Euro investment induces additional economic activity.

16