Hostname: page-component-745bb68f8f-lrblm Total loading time: 0 Render date: 2025-02-01T02:46:27.976Z Has data issue: false hasContentIssue false
  • English
  • Français

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
Get access Rights & Permissions [Opens in a new window]

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 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Arrow, Kenneth J., Solow, Robert M., Portney, Paul R., Leamer, Edward E., Radner, Roy & Schuman, Howard(1993). Report of NOAA Panel on Contingent Valuation, January 11, 1993, http://www.economia.unimib.it/DATA/moduli/7_6067/materiale/noaa%20report.pdf.Google Scholar
Banting, Doug, Doshi, Hitesh, Li, James, Missios, Paul, Au, Angela, Currie, Beth & Verrati, Michael(2005). Report on the environmental benefits and costs of green roof technology for the city of toronto, Toronto City Working Paper http://www1.toronto.ca/city_of_toronto/city_planning/zoning_environment/files/pdf/fullreport103105.pdf.Google Scholar
Bateman, Ian J., Lovett, Andrew & Brainardi, Julii (2004). Applied Environmental Economics: a GIS Approach to Cost-Benefit Analysis. Cambridge: Cambridge University Press.Google Scholar
Beelen, Rob et al. (2015). Natural-Cause Mortality and Long-Term Exposure to Particle Components: An Analysis of 19 European Cohorts within the Multi-Center ESCAPE Project. Environmental Health Perspectives, 123(6), 525–533.CrossRefGoogle Scholar
Berardi, Umberto, Hosein, Amir, Hoseini, Ghaffarien & Hoseini, Ali Ghaffarian (2014). State-of-the-Art Analysis of the Environmental Benefits of Green Roofs. Applied Energy, 115(115), 411–428.CrossRefGoogle Scholar
Bianchini, Fabricio & Hewage, Hasun (2012). Probabilistic Social Cost-Benefit Analysis for Green Roofs: A Lifecycle Approach. Building and Environment, 58(58), 152–162.Google Scholar
Blomquist, Glenn (1988). Valuing Urban Lakeview Amenities Using Implicit and Contingent Markets. Urban Studies, 25(25), 333–340.Google Scholar
Boadway, Robin (2006). Principles of Cost-Benefit Analysis. Public Policy Review, 2(1), 1–44.Google Scholar
Brander, Luke M. & Koetse, Mark J. (2011). The Value of Urban Open Space: Meta-Analyses of Contingent Valuation and Hedonic Pricing Results. Journal of Environmental Management, 92(10), 2763–2773.Google Scholar
Brenneisen, Stephan(2013). Personal email comment regarding Green roof costs in Switzerland. Professor in ZHAW Life Sciences and Facility Management, Research Focus in Green Roofs in Switzerland.Google Scholar
Brown, Douglas M. (1974). Introduction to Urban Economics. London: Academic Press Inc.Google Scholar
Carson, Richard, Flores, Nicholas, Martin, Kerry & Wright, Jennifer (1996). Contingent Valuation and Revealed Preference Methodologies: Comparing the Estimates for Quasi-Public Goods. Land Economics, 72(1), 80–99.CrossRefGoogle Scholar
Carter, Timothy & Keeler, Andrew (2008). Life-Cycle Cost–Benefit Analysis of Extensive Vegetated Roof Systems. Journal of Environmental Management, 87(3), 350–363.CrossRefGoogle ScholarPubMed
Clark, Corrie, Adriaens, Peter & Talbot, Brian (2008). Green Roof Valuation: A Probabilistic Economic Analysis of Environmental Benefits. Environmental Science and Technology, 42(6), 2155–2161.CrossRefGoogle ScholarPubMed
Claus, Karl & Rousseau, Sandra (2012). Public Versus Private Incentives to Invest in Green Roofs: A Cost-Benefit Analysis for Flanders. Urban Forestry and Urban Greening, 11(4), 417–425.CrossRefGoogle Scholar
Coffman, Reid R. & Waite, Tom (2011). Vegetated Roofs as Reconciled Habitats: Rapid Assays Beyond Mere Species Counts. Urban Habitats, 6(1).Google Scholar
Connelly, Maureen & Hodgson, Murray (2013). Experimental Investigation of the Sound Transmission of Vegetated Roofs. Applied Acoustics, 74(10), 1136–1143.Google Scholar
Copenhagen(2015). Websites of City of Copenhagen, http://en.klimatilpasning.dk/media/704006/1017_sJ43Q6DDyY.pdf.Google Scholar
Coughlin, Robert & Kawasima, Tatsuhiko(1973). Property values and open space in Northweast Philadelphia: An empirical analysis, Discussion Paper 4, Philadelphia: University of Pennsylvenia, Regional Science Research Institute.Google Scholar
Crompton, John L. (2001). The Impacts of Parks on Property Values: A Review of the Empirical Evidence. Journal of Leisure Research, 33(1), 1–31.Google Scholar
Currie, Beth A. & Bass, Brad (2008). Estimate of Air Pollution Mitigation with Green Plants and Green Roofs Using the UFORE Model. Urban Ecosystems, 11(4), 409–422.Google Scholar
Dubin, Robin A. (1992). Spatial Autocorrelation and Neighborhood Quality. Regional Science and Urban Economics, 22(3), 433–452.CrossRefGoogle Scholar
EEA (European Environment Agency) (2015). Websites, http://www.eea.europa.eu/themes/air/interactive/pm10.Google Scholar
Energy Authority (2016). Websites of the National Energy Association, Energy price statistics, https://www.energiavirasto.fi/en/web/energy-authority/.Google Scholar
EU(2008). Guide to cost-benefit analysis of investment projects, http://ec.europa.eu/regional_policy/sources/docgener/guides/cost/guide2008_en.pdf, p. 208.Google Scholar
EU eXterne study(2005). Summary report e.g. https://ec.europa.eu/research/energy/pdf/externe_en.pdf.Google Scholar
Fernandez-Cañero, Rafael, Emilsson, Tobias, Fernandez-Barba, Carolina & Machuca, Miguel (2013). Green Roof Systems: A Study of Public Attitudes and Preferences in Southern Spain. Journal of Environmental Management, 128(128), 106–115.Google Scholar
Finland’s environmental administration “FEA” (2012). Meluselvitykset 2012 (Noise Reports 2012, only in Finnish), http://www.finavia.fi/ymparisto/ymparistojulkaisut/selvitykset.Google Scholar
FMI(2015). Finnish Meteorological Institute Websites, http://ilmatieteenlaitos.fi/kesatilastot and http://ilmatieteenlaitos.fi/talvitilastot.Google Scholar
Freeman, Myrick A., Herriges, Joseph A. & King, Catherina L. (2014). The Measurement of Environmental and Resource Values. (3rd ed.). London: RFF Press.Google Scholar
Gabrych, Malgorzata, Kotze, Johan & Lehvävirta, Susanna (2016). Substrate Depth and Roof Age Sternly Affect Plant Abundances on Sedum-Moss and Meadow Green Roofs in Helsinki, Finland. Ecological Engineering, 86(86), 95–104.CrossRefGoogle Scholar
Gollier, Christian & Weitzman, Martin (2010). How Should the Distant Future be Discounted when Discount Rates are Uncertain? Economics Letters, 107(3), 350–353.Google Scholar
Ghermandi, Andrea, van den Bergh, Jeroen, Brander, Luke, de Groot, Henri & Nunes, Paulo (2010). Values of Natural and Human-Made Wetlands: A Meta-Analysis. Water Resources Research, 46(12), 1–12.Google Scholar
Green Building Research Laboratory Websites (2016). Green roof Energy Calculator v2, http://greenbuilding.pdx.edu/GR_CALC_v2/grcalc_v2.php#retain.Google Scholar
de Groot, Rudolf S., Wilson, Matthew A. & Boumans, Roelof M. J. (2002). A Typology for the Classification, Description and Valuation of Ecosystem Functions, Goods and Services. Ecological Economics, 41(3), 393–408.Google Scholar
Gyproc(2015). Gyprof.fi/Plasterboard manufacturer websites.Google Scholar
Hanemann, Michael W. (1991). Willingness to Pay and Willingness to Accept: How Much Can they Differ? The American Economic Review, 81(3), 635–647.Google Scholar
Hartig, Terry, Mang, Marlis & Evans, Gary W. (1991). Restorative Effects of Natural Environment Experiences. Environment and Behavior, 23(1), 3–26.Google Scholar
Hauru, Kaisa, Lehvävirta, Susanna, Korpela, Kalevi & Kotze, Johan D. (2012). Closure of View to the Urban Matrix has Positive Effects on Perceived Restorativeness in Urban Forests in Helsinki, Finland. Landscape and Urban Planning, 107(1), 361–369.Google Scholar
Heinonen, Tuomo(2012). Interview by Nurmi, V. (E-mail and phone communication). HSY (Helsinki Environmental Center) Manager of Investments Mr. Tuomo Heinonen.Google Scholar
Helimäki(2013). Interview by Nurmi. V. (E-mail communication). Acoustic Consulting Company.Google Scholar
Honkatukia, Juha, Mälkönen, Ville & Perrels, Adriaan (2008). Impacts of the European Emissions Trading Scheme on Finnish Wholesale Electricity Prices. In Giulio, Francesco (Ed.), Markets for Carbon and Power Pricing in Europe – Theoretical Issues and Empirical Analysis (pp. 160–192). Cheltenham UK: Edgar Elgar publishers.Google Scholar
IPCC(2014). Intergovernmental Panel on Climate Change, Summary for Policymakers. https://ipcc-wg2.gov/AR5/images/uploads/WG2AR5_SPM_FINAL.pdf.Google Scholar
Irvine, Katherine N., Devine-Wright, Patrick, Payne, Sarah R., Fuller, Richard A., Painter, Birgit & Gaston, Kevin J. (2009). Green Space, Soundscape and Urban Sustainability: An Interdisciplinary, Empirical Study. Local Environment, 14(2), 155–172.Google Scholar
Jokisalo, Juha(2012). Interview by Nurmi, V. (E-mail communication). Aalto Yliopisto Senior Researcher Juha Jokisalo.Google Scholar
Jungels, Jeremy, Rakow, Donald A., Allred, Shorna B. & Skelly, Sonja M. (2013). Attitudes and Aesthetic Reactions Toward Green Roofs in the Northeastern United States. Landscape and Urban Planning, 117(117), 13–21.Google Scholar
Jylhä, Kirsti, Kalamees, Targo, Tietäväinen, Hanna, Ruosteenoja, Kimmo, Jokisalo, Juha, Hyvönen, Reijo, Ilomets, Simo, Saku, Seppo & Hutila, Asko (2012). Rakennusten Energialaskennan Testivuosi 2012 ja Arviot Ilmastonmuutoksen Vaikutuksista. Ilmatieteen Laitos Raportteja, 6, 1–110.Google Scholar
Kaval, Pamela(2010). A summary of ecosystem service economic valuation methods and recommendations for future studies. Working paper series #10 Department of Economics, University of Waikato.Google Scholar
Kodinremontit.fi(2015). www.kodinremontit.fi, realized contract prices in Finland.Google Scholar
Lee, Kate E., William, Kathryn J., Sargent, Leisa, Farrell, Claire & Williams, Nicholas (2014). Living Roof Preference is Influenced by Plant Characteristics and Diversity. Landscape and Urban Planning, 122(122), 152–159.Google Scholar
Lee, Kate E., William, Kathryn J., Sargent, Leisa, Farrell, Claire, Williams, Nicholas & Johnson, Katherine (2015). 40-Second Green Roof Views Sustain Attentions. The Role of Micro-Breaks in Attention Restoration. Journal of Environmental Psychology, 42(42), 182–189.Google Scholar
Liu, Karen & Baskaran, Bass(2003). Thermal Performance of Green roofs through Field Evaluation—Ottawa Ottawa (Canada): National Research Council Canada, Institute for Research in Construction. Report no. NRCC-46412.Google Scholar
Madre, Frederic, Vergnes, Alan, Machon, Nathalie & Clergeau, Philippe (2014). Green Roofs as Habitats for Wild Plant Species in Urban Landscapes: First Insights from a Large-Scale Sampling. Landscape and Urban Planning, 122(122), 100–107.CrossRefGoogle Scholar
Mäler, Karl-Göran (1974). Environmental Economics: A Theoretical Inquiry. Baltimore: Johns Hopkins University Press.Google Scholar
Mentens, Jeroen, Raes, Dirk & Hermy, Martin (2006). Green Roofs as a Tool for Solving the Rainwater Runoff Problem in the Urbanized 21st Century? Landscape and Urban Planning, 77(3), 217–226.Google Scholar
Millennium Ecosystem Assessment (2005). Current State and Trend Assessments, Full report, http://www.unep.org/maweb/en/Condition.aspx.Google Scholar
Murphy, James, Allen, Geoffrey, Stevens, Thomas & Weatherhead, Darryl (2005). A Meta-Analysis of Hypothetical Bias in Stated Preference Valuation. Resource and Environmental Economics, 30(3), 313–325.Google Scholar
Nurmi, Väinö, Votsis, Athanasios, Perrels, Adriaan & Lehvävirta, Susanna(2013). Cost-benefit Analysis of Green Roofs in Urban Areas: Case Study in Helsinki Finnish Meteorological Institute - Reports 2013:2.Google Scholar
Peck, Steven (2003). Towards an Integrated Green Roof Infrastructure Evaluation for Toronto. The Green Roof Infrastructure Monitor, 5(5), 4–5.Google Scholar
Porsche, Ulrich & Köhler, Martin(2003). Life Cycle Costs of Green Roofs: A Comparison of Germany, USA, and Brazil. In Proceedings of the World Climate and Energy Event; 1–5 December 2003., Rio de Janeiro, Brazil. (22 October 2007 www.gruendach-mv.de/en/ri03_461_u_porsche.pdf).Google Scholar
van Renterghem, Timothy, Hornikx, Maarten, Forssen, Jens & Botteldooren, Dick (2013). The Potential of Building Envelopre Greening to Achieve Quietness. Building and Environment, 61(61), 34–44.Google Scholar
La Roche, Pablo & Berardi, Umberto (2014). Comfort and Energy Savings with Active Green Roofs. Energy and buildings, 82(82), 492–504.CrossRefGoogle Scholar
Rosenzweig, Cynthia, Gaffin, Stuart & Parshall, Lily(2006). Green Roofs in the New York Metropolitan Region: Research Report. Columbia University Center For Climate Systems Research and Nasa Goddard Institute for Space Studies. New York.Google Scholar
Ruuhela, Reija, Lahtinen, Matti, Haga, Lisa, Fronzek, Stefan & Carter, Timothy(2012). Investigating the Relationship Between Mortality and Temperature and a Possible Acclimatization Effect in Finland poster at the Second Nordic International Conference on Climate Change Adaptation, Helsinki 29–31.9.Google Scholar
Sailor, David J. & Hagos, M. (2011). An Updated and Expanded set of Thermal Property Data for Green Roof Growing Media. Energy and Buildings, 43(9), 2298–2303.Google Scholar
Saiz, Susana, Kennedy, Christopher, Bass, Brad & Presnail, Kim (2006). Comparative Life Cycle Assessment of Standard and Green Roofs. Environment Science and Technology, 40(13), 4312–4316.CrossRefGoogle ScholarPubMed
Santamouris, Mattheos (2014). Cooling the Cities – A Review of Reflective and Green Roof Mitigation Technologies to Fight Heat Island and Improve Comfort in Urban Environments. Solar energy, 103(103), 683–703.Google Scholar
Seppänen, Olli(2001). Rakennusten lämmitys (Heating of buildings, in Finnish) Suomen LVI-liitto ry. 2001.Google Scholar
Shabman, Leonard & Stephenson, Kurt (1996). Searching for the Correct Benefit Estimate: Empirical Evidence for an Alternative Perspective. Land Economics, 72(72), 433–449.Google Scholar
Shin, Eunha & Kim, Heungsoon (2015). Analysing Green Roof Effects in an Urban Environment: A Case of Bangbae-Seoul. Journal of Asian Architecture and Building Engineering, 14(2), 315–322.CrossRefGoogle Scholar
Sproul, Julian, Wan, Man P., Mandel, Benjamin H. & Rosenfeld, Arthur H. (2013). Economic Comparison of White, Green, and Black flat Roofs in the United States. Energyy and Buildings, 71(71), 20–27.CrossRefGoogle Scholar
Tan, Puay & Sia, Angelina (2005). A Pilot Green Roof Research Project in Singapore. In Proceedings of Third Annual Greening Rooftops for Sustainable Communities Conference, Awards Trade Show, Washington, DC, May 4–6.Google Scholar
Tervonen, Juha & Ristikartano, Jukka(2010). Unit-costs of different cost elements in road traffic 2010 (in Finnish), Finnish Transport Agency, Liikenneviraston ohjeita 21/2010, Helsinki.Google Scholar
Toronto and Region Conservation (TRC) (2007). An Economic Analysis of Green Roofs: Evaluating the Costs and Savings to Building Owners in Toronto and Surrounding Regions pdf available at http://www.sustainabletechnologies.ca/wp/wp-content/uploads/2013./03/GR_Econ.pdf.Google Scholar
Tyrväinen, Liisa & Miettineni, Antti (2000). Property Prices and Urban Forest Amenities. Journal of Environmental Economics and Management, 39(2), 205–223.CrossRefGoogle Scholar
U.S: Office of Management and Budget (2003). Circular A-4. Available at: www.whitehouse.gov/sites/default/files/omb/inforeg/regpol/circular-a-4_regulatory-impact-analysis-a-primer.pdf.Google Scholar
U.S. Government (2011). Benefits of Well-Designed, Well-Maintained Green Roofs, Available at: http://www.gsa.gov/portal/mediaId/167843/fileName/Benefits.action.Google Scholar
Weitzman, Martin (2001). Gamma Discounting. American Economic Review, 91(1), 260–271.CrossRefGoogle Scholar
Whatley, Melvin B.(2011). Life-Cycle Cost-Benefit Analysis of Green Roofing Systems: The Economic and Environmental Impact of Installing Green Roof on all Atlanta Public Schools.Google Scholar
White, Emma V. & Gatersleben, Birgitta (2011). Greenery on Residential Buildings: Does it Affect Preferences and Perceptions of Beauty? Journal of Environmental Psychology, 31(3), 89–98.Google Scholar
Wyzga, Ronald E. & Rohr, Annette (2015). Long-Term Particulate Matter Exposure: Attributing Health Effects to Individual PM Components. Journal of the Air and Waste Management Association, 65(5), 523–543.Google Scholar
Yang, Jun, Yu, Qian & Gong, Peng (2008). Quantifying Air Pollution Removal by Green Roofs in Chicago. Atmospheric Environment, 42(31), 7266–7273.Google Scholar
ZHAW (2013). School of Engineering in Switzerland. http://pd.zhaw.ch/publikation/upload/203013.pdf.Google Scholar
Supplementary material: File

Nurmi supplementary material

Appendix

Download Nurmi supplementary material(File)
File 27.9 KB