VALUATION AND EVALUATION OF GREEN INVESTMENTS
ON THE REGIONAL LEVEL
Dr. Karsten Rusche, Christine Rymsa-Fitschen, Jost Wilker
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Agenda
1. The Value of Green Infrastructure in urban
Quality of Life
2. Input-Output and Local Multiplier Analyses
3. Conclusion
Economic Evaluation - „Quality of Life“ - Rationale
City A City B
Wages A Wages B
Rents A Rents B==
Amenities A Amenities B=
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City A City B
Wages A Wages B
Rents A Rents B
><
Economic Evaluation - „Quality of Life“ - Rationale
Amenities A Amenities B<
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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“ =
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Regression results (scheme)
31%
46%
8%
14%
urban greennessregional GDP (economic conditions)population density (urban fabric/housing market)intercept
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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
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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
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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
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3
2
1
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VALUE Input-Output Analyses: Results
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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
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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.
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