Soft Benefits Aug 16-10
Soft Benefits Aug 16-10
Soft Benefits Aug 16-10
Final Report
Prepared by:
and
Prepared for:
August, 2010
1
Acknowledgements
The authors would like to thank the following project advisors for their invaluable
guidance in conducting this study: Hitesh Doshi (Ryerson University), Jamie Meil
(Athena Institute), Steven Peck (Green Roofs for Healthy Cities), Douglas Pollard
(CMHC), and Ralph Velasquez (Tremco Inc.).
Table of Contents
1 Introduction........................................................................................................................ i
2 Valuation Methodologies................................................................................................ i
3 Valuation of Benefits....................................................................................................... ii
Property Values............................................................................................................................... ii
Marketing Benefits........................................................................................................................ vi
Food Production and Food Security........................................................................................ vii
Sound Attenuation........................................................................................................................ vii
Stormwater Retention.................................................................................................................. ix
Air Quality......................................................................................................................................... x
GHG Sequestration....................................................................................................................... xii
4 Case Studies.................................................................................................................... xiii
901 Cherry Avenue, San Bruno, CA........................................................................................ xiii
Fairmont Waterfront Hotel, Vancouver, BC......................................................................... xiv
401 Richmond, Toronto, ON..................................................................................................... xiv
Rooftop Victory Gardens, Chicago, IL...................................................................................... xv
The Louisa, Portland, OR............................................................................................................ xv
5 Conclusions..................................................................................................................... xvi
Bibliography.......................................................................................................................... xix
1 Introduction....................................................................................................................... 1
2 Valuation Methodologies............................................................................................... 3
2.1 Revealed Preference Methodologies.............................................................................. 4
2.2 Stated Preference Methodologies................................................................................... 5
2.3 Avoided Cost Methodologies............................................................................................. 6
3 Valuation of Benefits....................................................................................................... 8
3.1 Property value increase..................................................................................................... 9
3.2 Marketing............................................................................................................................. 16
3.3 Food production and food security.............................................................................. 20
3.4 Sound Attenuation............................................................................................................. 24
3.5 Stormwater Retention...................................................................................................... 27
3.6 Air Quality Improvement................................................................................................ 32
3.7 Greenhouse Gas Sequestration...................................................................................... 36
4 Case Studies..................................................................................................................... 40
4.1 Case Study 1 – 901 Cherry Avenue, San Bruno, CA...................................................42
4.2 Case Study 2 – Fairmont Waterfront Hotel, Vancouver, BC...................................49
4.3 Case Study 3 – 401 Richmond, Toronto, ON............................................................... 56
4.4 Case Study 4 – Rooftop Victory Gardens, Chicago, IL..............................................63
4.5 Case Study 5 – The Louisa, Portland, OR..................................................................... 71
5 Conclusions...................................................................................................................... 79
Interviewees........................................................................................................................... 83
Bibliography........................................................................................................................... 85
Summary
1 Introduction
The use of green roofs can offer a tangible solution to many challenges faced by
communities across Canada today. Articulating the value of those benefits in
monetary terms provides an estimate of their contribution to local and regional
economies and permits governments, land developers and building owners to
assess short- and long-term public and private gains.
While some benefits are directly measurable and have ‘hard’ values (such as the
energy savings due the insulation provided by the soil and vegetation of a green
roof), many benefits are not readily measurable and their values are difficult to
estimate (such as the health benefits of a rooftop garden). For the purpose of this
study, those benefits that are not directly measurable (or calculated based on any
line item on the buildings budget) will be defined as ‘soft’ benefits.
The purpose of this report is to provide methodologies and case studies that can
offer guidance in attributing economic value to selected soft benefits of green roofs.
We offer methodologies that can be easily employed by stakeholders with limited
information about the property concerned. In other words, our goal is to put
forward heuristic methods that can be used with data that is usually readily at hand.
Needless to say, this approach entails a trade-off between ease of use and the level
of detail and precision. Keeping this in mind, the results obtained with the proposed
methods should be applied prudently.
2 Valuation Methodologies
The soft benefits of green roofs are not directly tradable and therefore do not have
directly measurable monetary values. To determine their monetary value, non-
market or indirect valuation techniques must be employed. Estimating the total
economic value of a non-market good or service entails calculating the sum of all
values associated with that good or service. The two main categories of value are
use and non-use values. Use values can either be direct or indirect. Direct use value
refers to the value that is derived from actual or planned use of a particular
environmental service or good. Recreation and food production are two examples of
direct use values. Indirect use value occurs when people benefit from an
environmental amenity without consciously using it. Water filtration, climate
regulation are examples of the indirect use values of environmental amenities. Non-
use value refers to the value that individuals place on an environmental amenity
without having any planned use for it. An example of a non-use value is the intrinsic
value that people attribute to an environmental amenity (like the boreal forest)
simply for its existence. The methods used to estimate non-use values are
considerably more complex and are beyond the scope of this report.
Non-market valuation techniques have been developed in order to estimate the net
value that the public or individuals attribute to environmental amenities such as
green infrastructure. Three general categories of nonmarket valuation
methodologies exist. The first category, revealed preference methods (i.e., travel
cost, hedonic pricing, market comparables, and cost avoidance) uses behaviours and
information observed in markets to estimate non-market values. The second
category, stated preference methods, which includes the contingent valuation
technique, attributes economic value by asking people their willingness to pay for a
service or willingness to accept compensation to voluntarily forgo a service. The
third category is avoided cost analysis, which can be used to determine the value of
green infrastructure by quantifying the costs that would be incurred if the services
provided by the infrastructure were not available or had to be provided by building
conventional infrastructure.
3 Valuation of Benefits
The objective of our research is to provide readers with non-technical methods for
estimating the soft benefits associated with a green roof project based on readily-
available information and without the need for undertaking major research. The
benefits that are included here are those for which we could find relatively simple
valuation methods that could be applied by non-specialists with limited resources
for data gathering. The proposed methods were gathered from current practices
and the existing literature.
Property Values
Green infrastructure investments have been shown to positively affect the property
value and marketability of nearby real estate. In the case of green roofs, this benefit
would accrue to the owner or owners of a building with a green roof and, to a lesser
degree, to owners of surrounding properties. Hedonic valuation techniques have
been used to measure the relationship between the selling price of a residence and
its distance from an urban greenspace, park, community garden or wetland. At
present, there are no studies that have measured the potential of green roofs to
increase the selling price of a condominium or other residential building. In the
absence of hedonic pricing studies looking specifically at green roofs, we can use
estimates of property value increases generated by other types of green
infrastructure, e.g., an at-grade community garden or park.
View onto a Green Roof
Assuming that having a view onto a green roof has a similar effect to new tree
plantings, the value of the benefit accrued to owners of properties is 9% of the value
of the portion of a building that affords a direct view onto a green roof. This is based
on Wachter’s (2004) finding that tree planting along a street in front of a property
increases the property's value by up to 9%. Where neighbours of the green rooftop
are concerned, we assume that greening a rooftop is equivalent to tree planting at-
grade – it adds greenery but does not change the amount of recreational green space
to which they have access. We do not attribute any increased value to a green roof
without trees.
Assuming that having a view onto a green roof has a similar effect to new tree
plantings, the value of the benefit accrued to owners of properties is 9% of the value
of the portion of a building that affords a direct view onto a green roof. This is based
on Wachter’s (2004) finding that tree planting increases property values up to 9%.
Where neighbours of the green rooftop are concerned, we assume that greening a
rooftop is equivalent to tree planting at-grade. For them, the greening of the rooftop
has much the same effect as tree planting – it adds greenery but does not change the
amount of green space to which they have access. We do not attribute any increased
value to a green roof without trees.
For the purpose of estimating the value of the benefit for a whole building, we
assume that only half the neighbouring storeys above the green roof are oriented so
as to afford a view onto it. The increase in property value that accrues to a building
with a view onto a green roof can therefore be estimated using the following
formula:
Where:
hv = height of the building with a view onto the green roof (storeys)
For the purpose of estimating the value of the benefit for a single unit in a building
that has a direct view onto a green roof, we propose using the following formula:
Recreational Rooftop Garden
A rooftop garden that is accessible to building dwellers will offer recreational
benefits that may be reflected in the value placed on the building. To estimate this
value, we turn to studies that have assessed the impact on housing values in
locations abutting public parks. Using the hedonic method, Crompton (2005) has
suggested that homes adjacent to public parks have about a 20% higher property
values than similar homes distant from parks.. Given that an abutting park offers
both recreational and view benefits, we deduct the view benefit (9% of property
value) calculated above to arrive at a recreational benefit of 11%.
Where:
Where:
Where:
Let:
F = 0.07 when 0 ≤ d ≤ 5 m
Area-Wide Benefit
The above stated formulas are intended for calculating the value of proximity
benefits that accrue to individual properties. Municipal decision makers may be
more interested in the total, area-wide increase in property values resulting from a
green roof project. In this case, it is necessary to sum the values of the benefit
accruing to the host property with those accruing to neighbouring properties.
Where:
btotal = total area-wide property value benefit ($)
Marketing Benefits
The mass media and the public’s interest in environmentally friendly products and
services continue to rapidly increase in North America. Green roofs and other green
infrastructure on or near a building can therefore be considered as a marketing
amenity that increases a development’s exposure and enhances the absorption rate
of its units. Applying the comparable costs methodology, one way of estimating the
marketing benefits of green infrastructure would be to assess the value of the
publicity gained as a direct consequence of green infrastructure investments.
The marketing benefits of green roofs will depend on a number of factors that are
unknown in advance or difficult to quantify, such as the current interest of local
media in green infrastructure and green buildings. The best way to estimate the
marketing benefits is by basing it on the value of the publicity received due to the
presence of the green roof in the project. The value of the free publicity received can
be estimated by comparison to the cost of advertizing in three media: radio,
television, and print. The cost for each of the three media is broken down into the
production cost plus the cost of running the ad. The former can be assumed to be
constant as it is a onetime cost. The latter is the cost of having the ad aired on radio
and television and printed in newspapers.
The value of free publicity can in principle be estimated according to the following
formula:
Where:
From our review of existing urban gardens, we estimate that their productivity
ranges between $20,000 and $200,000 per hectare per growing month. It appears
that mixed fruit and vegetable gardens are at the low end of the productivity range
while gardens focused more on flowers, herbs, and lettuces are at the higher end.
The productivity of an urban garden also depends on the duration of the growing
season – i.e., the number of months between the last spring frost and the first fall
frost.
We propose the value of the food production benefit be estimated using the
following formula:
Where:
P = productivity ($/m2•month)
Sound Attenuation
Vegetated surfaces provide important sound insulation properties and are often
employed for their noise reduction potential in urban settings. Green roofs can
provide important noise reduction opportunities for buildings, especially those
under flight paths or elevated transit systems. Hedonic pricing and contingent
valuation methodologies have both been employed to assess the social costs of noise
and estimate values for noise reduction measures such as green roof
implementation.
Sound attenuation provided by a green roof will depend on the properties of the
chosen substrate and on the substrate’s thickness. In the absence of data on the
noise attenuation properties of different substrates with different thicknesses, we
propose a low (5 dB attenuation) and a high scenario (13 dB attenuation) based on
Connelly & Hodgson’s (2008) findings on the sound attenuation of 75 mm and 150
mm green roof substrates. The aforementioned findings are those for low- and mid-
range frequencies; we assume that most ambient noise in an urban setting falls into
this category. We assume that a green roof would primarily reduce noises from
overhead sources, such air traffic and elevated roadways and trains; it would have
little or no effect on street level traffic noise. Thus, the benefit would only accrue to
properties affected by overhead noise.
When using the hedonic pricing technique, the cost of noise is measured by the
Noise Sensitivity Depreciation Index (NSDI), which represents the average
percentage decrease in total property value per 1-decibel increase in noise level
above a baseline level. Based on the findings of Bateman et al (2000), for properties
near airports or under airport flight paths, we propose using an NSDI of 0.33%; for
properties near elevated roadways or railways that are above roof level, we propose
using an NSDI of 0.64%.
We assume that a green roof would only affect noise levels only on the top floor of
the building. For the purpose of estimation, we assume that each floor is worth an
equal portion of the total property value. Hence, the value of the top floor is the total
property value divided by the number of storeys.
We propose the value of the sound attenuation benefit be estimated using the
following formula:
Where:
v
=0 . 0165⋅
h
Stormwater Retention
Vegetated surfaces on rooftops can retain considerable amounts of stormwater and
reduce peak flows into the stormwater system during storm events. Less peak
runoff means that new storm sewer systems can have a smaller capacity or existing
systems can support more development before being upgraded, which translates to
lower capital expenditures for developers and municipalities. Lower peak flows
means lower expenditures by the municipality in erosion control measures along
streams and rivers. Thus, we propose that the benefit of this measure be estimated
by calculating the avoided cost of expanding stormwater treatment facilities and in
erosion control measures.
For the stormwater retention benefit, Cunningham (2001) provides figures for the
cost of three types of stormwater retention infrastructure, including: a surface
storm water retention pond, valuated at $20.13/m 3 of stormwater; mixed at-grade
BMPs, valuated at $212.15/m3 of stormwater; and an underground retention basin,
valuated at $1,059.44/m3 of stormwater. For the erosion benefit, the City of
Waterloo (2005) estimates that conventional stormwater management
infrastructure related to erosion control requires a one-time expenditure of
C$13.66/m3 of stormwater.
The values per unit of area of the green roof of the stormwater services that we are
considering depend critically on the water retention capacity of the green roof. For
estimation purposes, we will assume an average retention capacity of 42.7L/m 2roof,
as used by Carter and Keeler (2008), which we take to be a typical figure for an
extensive green roof.
We propose the value of the storm water retention benefit be estimated using the
following equation:
Where:
Using the values for stormwater retention cost (for the cheapest alternative, a
retention pond) and erosion mitigation cost given above, we get:
Air Quality
Green plants absorb gaseous pollutants through their leaf stomates (pores).
Vegetations can also capture some of the particulate matter in the air. By mitigating
the heat island effect, urban vegetation can further help reduce smog given that
higher temperatures favour smog formation. Air pollution adds to the burden of the
health care system, causes disabilities or premature death, and reduces the
productivity of the workforce. In order to assess the economic value of this service,
we can estimate the avoided cost of health care.
The critical determinants of a green roof’s capacity to mitigate pollution and yield
health benefits include its area and the mix of plant species that is used, as some
species absorb more pollutants than others. Other factors include the levels of air
pollution at the given location and the climate. In terms of the latter, the pollution
mitigation provided by the green roof may be limited outside the growing season,
particularly if it is covered with snow. We take a seven-month growing season to be
the baseline case.
We have calculated values for the pollutant removal health benefit using Yang, Yu
and Gong’s (2008) and Kowal’s (2008) findings (see Table S-1).
Table S-1 - Value of annual pollutant removal health benefit for different types of
green roof vegetation (US$/m2·year)
Type of vegetation SO2 N02 PM10 O3 Total
Short Grass 0.0010725 0.0157275 0.00504 0.0303075 0.0521
Tall Herbaceous Plants 0.0013695 0.0198450 0.00684 0.0392175 0.0673
Deciduous Trees 0.0016665 0.0240975 0.00972 0.0483975 0.0839
Combining data from Yang, Yu and Gong (2008) and Kowal (2008)
We propose the following formula for estimating the annual value of the health
benefit of pollution mitigation provided by green roofs:
Where:
Hsg = health benefit for short grass pollution absorption ($/m 2•year)
Using the annual pollutant removal values cited in the table, we obtain:
GHG Sequestration
A further benefit of green roofs and other green infrastructure is their ability to
capture and store – i.e., sequester – carbon dioxide. Valuating the carbon dioxide
sequestration benefit of green infrastructure entails estimating the marginal social
cost of damages that would have been caused due to temperature increases if not
for the sequestration carried out by the vegetation involved.
Our formula for estimating the value of sequestered carbon is based on the findings
of the David Suzuki Foundation (see Table S-2). We assume that the annual carbon
uptake of these types of vegetation is the same on a green roof as at grade. As the
methodologies reviewed estimate the sequestration value of trees on a large scale
basis (square kilometres or hectares), and because the values are relatively small,
we use hectares rather than meters as units of area.
Table S-2 - Carbon sequestration values per hectare for Greater Golden Horseshoe
Greenbelt land types
Forest Grassland Agricultural Lands
Cropland Idle land Hedgerows Orchards
Stored carbon $919 $213 $332 $317 $328 $298
Annual carbon uptake $39.11 $28.46 N/A $28.59 $28.59 $28.59
Source: David Suzuki Foundation, 2008
We propose the following formula for calculating the value of annual carbon
sequestration provided by a green roof:
Where:
Note:
In this section, we apply the methodologies developed in the last section to five case
studies in order to estimate the actual benefits associated with these green roofs
under realistic conditions. The information for these scenarios is drawn from
sources such as Steven Peck's 2008 book Award Winning Green Roof Designs, project
web sites, and interviews with architects and developers.
The case studies were chosen in order to represent a variety of building types and
locations. Together, they provide opportunities for the use of all the calculation
methods presented in the last section.
property value
one time $24,482
(neighbouring condo unit)
property value
one time $2,189,385
(view)
$5,641,117
property value
one time
(accessible recreational garden)
5 Conclusions
This report has provided evidence that soft benefits produce economic advantages
for individual property owners, municipalities, and society at large. Despite the fact
that the benefits depend on the local context, we have provided heuristic methods to
estimate the economic value associated with seven soft-benefits. These are methods
that can be used by property owners, developers, architects, municipal officials, and
other stakeholders with information that is often readily-at-hand. The reader should
keep in mind the assumptions that had to be made in order to arrive at these quick
calculation methods. Some of these assumptions, along with the beneficiaries,
benefiting period, and a short statement of the valuation method appear in the Table
S-3.
Table S-3 - Summary of Soft Benefit Valuations
Benefit Category Beneficiaries Assumptions Type Valuation
Property Value
The case studies presented in this report show that the proposed valuation
methodologies can be applied in real-life situations without requiring large (or
difficult to obtain) data inputs. In general, the valuations returned by applying the
methodologies seem to be of a reasonable magnitude.
Among the one-time benefits proposed here, the property value benefits are by far
the most significant. Properties with accessible green roofs are subject to a 11%
property value premium, while those with rooftop food gardens gain 7% in property
value. Neighbours of both types of green roofs also stand to benefit significantly
from their presence. Those who have views onto a green roof could gain up to 4.5%
of property value, while those adjacent to rooftop food gardens could gain from 2%
to 7%. It should be noted that the sum of the all the property value gains accruing to
neighbouring properties could be considerably larger than the value of the benefit
accruing to the host property.
The value of the stormwater management benefit varies considerably when viewed
as a fraction of property value. In the 401 Richmond case, for example, it is
estimated to be worth between 0.01% and 0.28% of property value, whereas in the
case of the True Nature Foods Victory Garden, it is estimated to be worth 0.2% to
6.9% of the property value. This benefit is not tied to property value but rather to
the area of the green roof; True Nature Foods has low property value but a relatively
large roof and the stormwater benefit is therefore much larger relative to property
value.
Where ongoing benefits are concerned, the food production benefit is much more
valuable than the air quality and GHG sequestering benefits, according to our
methods of estimation. We propose that the value of the food produced on a rooftop
garden is worth $2 to $20 per square metre per month in the growing season. As
most of the North American population lives in places where the growing season is
at least 6 months long, the benefit is therefore worth at the very least $12/m 2 of
rooftop growing area per year. In places with a year-round growing season, such as
in the southern coastal states, the benefit could be worth up to $240/m 2 per year. In
contrast, the air quality benefit is worth between $0.0521/m 2 to $0.0839/m2 per
year and the GHG sequestration benefit is worth $0.0028/m 2 to $0.0039/m2 per
year.
The difference between food production and air quality/GHG benefits is well
illustrated by the two case studies that feature rooftop food production. On the
Fairmont Waterfront Hotel herb garden, food production is estimated to be worth
$3,121 to $31,210 per year, while air quality improvement is worth $11.54-$18.73
per year and GHG sequestration is worth a mere $0.56-$0.76 per year. On the True
Nature Foods Rooftop Victory Garden, food production is estimated to be worth
$2,289 to $22,890 per year, while air quality improvement is worth $8.47-$13.73
per year and GHG sequestration is worth a mere $0.47-$0.64 per year.
Given how small the air quality and GHG sequestration benefits are, it is almost
meaningless to include them in an assessment of the benefit values for individual
green roofs. Both of these benefits would be more meaningful if calculated for
numerous green roofs covering a substantial portion of a neighbourhood or city. For
example, as reported above, Bating et al (2005) calculated that if all flat rooftops
across the City of Toronto were extensively greened, the annual cost savings
attributable to reduction in air pollution would amount to US$1,970,000
(C$2,700,000 in 2008).
Readers are reminded that the methodologies offered here are heuristic in nature;
they are rough estimations based on a number of assumptions that are reasonable
in most cases but may not be applicable in specific contexts. Changes in the
assumptions will of course lead to a different evaluation of benefits. Also, the report
provides calculation methods for a range of greenroof conditions. These are meant
to serve as benchmarks only and of course do not cover all potential situations. The
user is asked to use their own best judgment as to whether and how the
assumptions made and range of conditions covered in this report can be usefully
applied or adapted to their own unique situation.
As already noted, the goal of this report was to allow users to make rough
calculations of benefits without undertaking a major research effort. For the most
part, this has been achieved: the equations require data that is usually readily
available such as property value, building height, roof area, and so on. The sole
exception is the marketing benefit, which requires detailed information on publicity
gained due to the green roof. Our experience with the case studies suggests that
most green roof property owners do not have precise information on media
coverage, if they track it at all. Future research might address this by tacking media
coverage across many green roof projects and generating a more generic formula
for estimating the value of the marketing benefit.
To our knowledge, this is the first attempt in the growing literature on green roofs
to offer a means for calculating the value of a range of soft benefits associated with
the use of the technology. Clearly, however, it is not the last word. Future research
may not only allow us to refine the approaches offered here but to expand the range
of soft benefits covered to include, for example, habitat creation and community
building. If this report has helped put us on this path, then it has served its purpose.
Bibliography
Bateman, I., Day, B., Lake, I., & Lovett, A. (2000). The Effect of Road Traffic on
Residential Property Values: A Literature Review and Hedonic Pricing Study.
Edinburgh: Scottish Office, Development Department.
City of Waterloo (2005). Green Roof Feasibility Study and City Wide Implementation
Plan. Public document (http://www.city.waterloo.on.ca/Portals/57ad7180-c5e7-
49f5-b282-
c6475cdb7ee7/LIBRARY_Plans_documents/GRReport2005Complete.pdf).
Peck, S. (2008). Award Winning Green Roof Designs. Toronto: Green Roofs for
Healthy Cities.
Yang, J., Yu, Q., & Gong, P. (2008). Quantifying air pollution removal by green roofs in
Chicago. Atmospheric Environment 42, 7266-7273.
1 Introduction
The use of green roofs can offer a tangible solution to many challenges faced by
communities across Canada today. Vegetated surfaces offer social and
environmental benefits to building occupants and owners, municipal governments
and surrounding communities, from improved stormwater management, habitat
creation, absorption of air pollutants, and reduced energy requirements, to crime
reduction, community building, and opportunities for food production. In short, the
implementation of green roofs can improve the overall functionality of the
ecosystem, contribute to economic efficiency, and enhance the quality of human life.
Articulating the value of the numerous environmental and social services of green
roofs in monetary terms provides an estimate of their contribution to local and
regional economies and permits governments, land developers and building owners
to assess short- and long-term public and private gains. While some benefits are
directly measurable and have ‘hard’ values (such as the energy savings due the
insulation provided by the soil and vegetation of a green roof), many benefits are
not readily measurable and their values are difficult to estimate (such as the health
benefits of a rooftop garden). For the purpose of this study, those benefits that are
not directly measurable (or calculated based on any line item on the buildings
budget) will be defined as ‘soft’ benefits.
Green roofs and other green infrastructure1 have traditionally been thought of as
cost centres that contribute little or no economic benefit. However, recent work in
the field of environmental economics has brought to light the vital economic
contribution that green infrastructure makes in terms of providing "services" (such
as purifying water and air) to society and individuals alike. 2 Excluding soft benefits
from assessments of the value of green roofs could lead to a underestimation of
their real benefit to society and less policy attention devoted to promoting the
infrastructure that gives rise to them. Moreover, without a quantified value, soft
benefits cannot be objectively classified or compared to one another or other
benefits, making rational decisions about the best return on public and private
investment difficult to make. Soft benefit valuation is therefore a critical
undertaking to better inform public policy initiatives and private development
decisions. By considering soft benefits, we obtain a more complete picture of all the
direct and indirect impacts of green roofs on individual buildings, on their
1
Green infrastructure includes wetlands, urban forests and parks, green roofs, community gardens, vegetated
swales, rain gardens and other natural or constructed vegetated areas that perform environmental ecological
services for surrounding human populations.
2
Costanza (1998) has estimated that the world’s ecosystem services provide a benefit in the range of US$16 –
54 trillion (10) per year, with an average of US$33 trillion per year. Global gross national product total is around
US$18 trillion per year.
surroundings, and on society at large.
The purpose of this report is to provide methodologies and case studies that can
offer guidance in attributing economic value to selected soft benefits of green roofs.
Since very few studies to date have focused directly on the economic valuation of
green roof soft benefits, we draw where necessary on studies related to other types
of green infrastructure. It is important to note that our intention here is to offer
methodologies that can be easily employed by stakeholders with limited
information about the property concerned. In other words, our goal is to put
forward heuristic methods that can be used with data that is usually readily at hand.
Needless to say, this approach entails a trade-off between ease of use and the level
of detail and precision. Keeping this in mind, the results obtained with the proposed
methods should be applied prudently.
6 Valuation Methodologies
The soft benefits of green roofs are not directly tradable and therefore do not have
directly measurable monetary values. To determine their monetary value, non-
market or indirect valuation techniques must be employed. Estimating the total
economic value of a non-market good or service entails calculating the sum of all
values associated with that good or service. The two main categories of value are
use and non-use values. Use values can either be direct or indirect. Direct use value
refers to the value that is derived from actual or planned use of a particular
environmental service or good. Recreation and food production are two examples of
direct use values. Indirect use value occurs when people benefit from an
environmental amenity without consciously using it. Water filtration, climate
regulation are examples of the indirect use values of environmental amenities. Non-
use value refers to the value that individuals place on an environmental amenity
without having any planned use for it. An example of a non-use value is the intrinsic
value that people attribute to an environmental amenity (like the boreal forest)
simply for its existence. The methods used to estimate non-use values are
considerably more complex and are beyond the scope of this report.
Non-market valuation techniques have been developed in order to estimate the net
value that the public or individuals attribute to environmental amenities such as
green infrastructure. Three general categories of nonmarket valuation
methodologies exist. The first category, revealed preference methods (i.e., travel
cost, hedonic pricing, market comparables, and cost avoidance) uses behaviours and
information observed in markets to estimate non-market values. The second
category, stated preference methods, which includes the contingent valuation
technique, attributes economic value by asking people their willingness to pay for a
service or willingness to accept compensation to voluntarily forgo a service. The
third category is avoided cost analysis, which can be used to determine the value of
green infrastructure by quantifying the costs that would be incurred if the services
provided by the infrastructure were not available or had to be provided by building
conventional infrastructure.
Table 1 presents a summary of non-market valuation methods explored in this
report and the strengths and limitations of each. The methodologies and specific
valuation frameworks applicable to green infrastructure benefit valuation are
outlined in greater detail below.
Table 1 - Non-market valuation techniques
Value
Methodology Description Strengths Limitations
captured
Assumes that the
environmental characteristics
(e.g., a pleasant view or the
Very data-intensive
disamenity of a nearby landfill
approach to economic
site), as well as other property
valuation (e.g.:
features, are reflected in Based on market
identifying all relevant
property prices. The value of Direct and data and prices –
Hedonic pricing attributes for a
the environmental component Indirect use relatively important
particular good).
can therefore be captured by figures.
Choosing the
modeling the impact of all
appropriate variables is
possible influencing factors on
difficult.
the price of the property.
Hedonic pricing can measure
direct and indirect use value.
Uses data on the price of
Market data readily
Market similar goods or services that Direct and Limited to benefits for
available and
comparables are traded in the market as a indirect use which markets exist.
robust
proxy for willingness-to-pay.
Typically administered through
a public survey. Consumer or
clients are asked how much Based on individual
Captures use and
Contingent they would be willing to pay Use and non- responses, people tend
non-use ecosystem
Valuation for a good or service, or how use to under-value
functions
much they would be willing to amenities.
accept in compensation for its
loss.
Uses cost of replacing
ecosystem services with Avoided costs do not
Costs can often be
Avoided Cost conventional infrastructure, or Direct and necessarily reflect the
estimated from
Analysis avoided health costs to indirect use social value of an
market prices
estimate value of ecosystem ecosystem service.
services.
Source: Adapted from DEFRA, 2007 p.37
Variations in real estate value are dependent on a large number of factors. Hedonic
pricing models have estimated the variations based in the following attributes: the
square footage of a property, the age of the property, number of bedrooms, number
of bathrooms, number of units, number of storeys, distance from the central
business district (CBD), transportation access and the neighbourhood’s socio-
economic characteristics.
Hedonic pricing may be used to estimate direct and indirect use values. One
shortcoming of the hedonic pricing approach is that it’s a very data intensive
methodology. Identifying every relevant attribute that makes up the total value of a
good can be a long and difficult process.
A number of problems have been associated with stated preferences methods. One
critique is that people are potentially unwilling or unable to express willingness to
pay truthfully or accurately - i.e., there can be a discrepancy between how much
people state they are willing to pay and how much they actually pay for a given good
or service, resulting in inaccurate estimates of that good’s or service’s monetary
value. Nevertheless, this valuation method is useful in estimating the value of goods
and services that are not sold on the market. This can include goods and services
that are provided by the public sector for free or below cost. It can also include
goods and services that are not widely available and for which revealed preferences
therefore cannot be observed (Champ et al., 2003).
It is important to note that this method does not provide a direct estimate of the
value of the ecological service to the public, but only the cost of replacing that
service if it were lost. It is a valid approach if the human-made alternatives are
equivalent in quantity and magnitude to the natural functions; the alternative is the
least-cost alternative method of performing the function; and individuals in
aggregate would be willing to incur these costs to obtain the services (DEFRA,
2007).
7 Valuation of Benefits
This section presents methodologies for valuating a variety of soft benefits that
accrue to green roofs. While our primary focus is on green roofs, we include
information related to other forms of green infrastructure if the information is
readily transferrable to green roofs. The purpose here is to provide readers with
non-technical methods for estimating the soft benefits associated with a green roof
project based on readily available information and without the need for undertaking
major research.
The benefits that are included here are those for which we could find relatively
straightforward valuation methods that could be applied by non-specialists with
limited resources for data gathering. The proposed methods were gathered from
current practices and the existing literature. The benefits covered are:
For each benefit, we discuss the nature of the benefit, review existing practices and
literature that contributes to an understanding of the monetary value of the benefit,
and offer a method that could be used by non-specialists to estimate the value of
that benefit in a given context.
It is important to note that the methodologies offered here are heuristic in nature;
they are rough estimations based on a number of assumptions that are reasonable
in most cases but may not be applicable in specific contexts. The assumptions are
clearly stated in the description of each methodology below. The user is asked to use
their own best judgment as to whether the methods provided can be usefully
applied or adapted to their own unique situation (e.g., length of growing season,
depth of growing medium, or mix of plant types). For most of the benefits included
in this report, values for a reasonable range of situations is provided for readers to
consider when evaluating the benefits of a specific green roof. The ranges provided
are benchmarks only and of course do not cover all potential situations.
Although all soft benefits tend to be context-specific to some degree, some benefits
are simply too context-specific to include in an analysis of this type and are excluded
from the following analysis. Examples of excluded soft benefits are improved
aesthetics, crime reduction, increased biodiversity, and building a sense of
community.
The different benefits covered in this section accrue to different stakeholders; some
go to the owner(s) of the building on which the green roof is found (e.g., property
value increases), others go to the municipality (e.g., stormwater retention), while
some go to the regional (e.g., air quality improvements) or planetary (e.g.,
greenhouse gas mitigation) population. Benefits accrue either on a one-time basis
(such as an increase in property value) or an annual basis (such as greenhouse gas
mitigation).
It is important to note that the methods presented below are intended to calculate
the gross value of the benefits considered. The methods do not account for the costs
involved in producing the benefits. In particular, we do not account for the extra
costs involved in creating a green roof compared to a conventional roof. In the case
of benefits that consist of an increase in property value, we do not consider the
higher property taxes that could be applied as a result. In the case of food
production, we do not account for direct inputs such as the cost of materials and
labour.
All monetary values given below are in US dollars unless stated otherwise. Where
possible and relevant, we have adjusted the values for inflation to show the value in
2008 dollars.
Essentially, the hedonic pricing model estimates the impact of green infrastructure
on real estate market value by comparing properties that differ with respect to their
distance from an amenity such as a park, wetland, open space or community garden.
The positive relationship between the relative value of a dwelling and its distance
from green infrastructure elements is called the proximity principle (Edwards,
2007). The proximity principal suggests that the value of parks and other green
infrastructure is captured in the price of surrounding real estate. The value of the
amenity is capitalized in the form of home prices and property taxes collected by
local governments. Here, we present a few case studies that have estimated the
relative impact of green infrastructure investments on property prices using the
hedonic pricing model.
Using data on over 3000 property sales between 1980 and 2003 in the
New Kensington area of Philadelphia, Wachter (2004) quantified the
effect that investing in green infrastructure would have on property
values. Specifically, the author looked at the impact of converting
vacant lots into green spaces on surrounding home prices. A hedonic
regression model was developed that integrated variables on sales
and structural characteristics of homes (e.g., date of sale, number of
storeys, home size, lot size, elements of location). The model included
data on the real estate’s proximity to green infrastructure as well as
its distance from disamenities such as vacant lots. Study results
suggested that replacing unsightly vacant lots with grass landscapes
and trees increased surrounding property values by up to 30 percent.
Houses sold within 50 feet from new tree plantings showed a 9
percent increase in property value. In the sample neighbourhood
chosen for this study, property value increased by $12 million due to
vacant lot conversion and $4 million due to tree plantings. Based on
an effective tax rate of 2.64% accumulated over 20 years, the benefits
gained from lot improvements and new tree plantings would
represent a respective property tax base increase of $6,336,000 and
$2,112,000 for the local government (Steve Wise, personal
communication).
Voicu and Been (2008), using a hedonic price model, found that the
implementation of new community gardens had a significant impact
on surrounding property values in New York City. They studied the
effect of property values at four different points in time with respect
to the completion of the community garden: at the moment of
completion, one year, three years, and five years after completion. In
all cases, the effect was calculated for three ranges of distance from
the community garden: abutting the garden, up to 500 feet from the
garden, and up to 1,000 feet from the garden (see results in Table 2
below). The authors observed that value of properties near
community gardens, especially those abutting them, increased over
time after implementation. The authors also found that the effect was
significantly stronger in low-income areas than in high-income areas.
**change in price applying the percent change in price to the median per unit sale price of properties
sold within the ring
Source: Voicu and Been, 2008
The hedonic pricing model would be an ideal technique to calculate green roofs’
effect on property value. Using this method, the value of buildings with green roofs
could be compared to that of buildings with conventional roofs while controlling for
other variables that are known to have an effect on property value. In the hedonic
price model, green roofs could be represented as a single Boolean value, denoting
whether the building has a green roof or not. This would be the least data intensive
approach but would also provide the least accurate estimate, failing to account for
qualitative differences between green roofs. A more accurate approach would be to
use a continuous variable, denoting the percentage of the given roof that is green.
Additional Boolean variables could be added to represent qualitative differences
between green roofs (e.g., extensive versus intensive, accessible versus inaccessible,
etc.).
At present, however, there are no hedonic studies that have measured the potential
of green roofs in increasing the selling price of a condominium or other residential
building. In the absence of hedonic pricing studies looking specifically at the effect of
green roofs on property values, we must make an estimate using studies performed
on other types of green infrastructure. The selection of the appropriate type of
green infrastructure for this purpose would depend on the features of the green roof
being assessed, i.e., whether the roof is accessible, whether food is grown on it, and
whether it is visible from other locations.
An accessible green roof could be used in two broad ways: as a recreational space or
as a food production space. In the former case, it would seem that the best
comparable would be at-grade public parks; in the latter case, the best comparable
would be at-grade community gardens. The key difference between rooftop green
infrastructure and at-grade green infrastructure is that the former are likely to be
accessible only to the occupants or users of the building with the rooftop facility
whereas the latter are likely to be accessible to the community at large. Thus, the
benefits of rooftop infrastructure accrue mostly, if not exclusively, to the properties
on which it is located; the benefits, if any, accruing to neighbouring properties are
likely to be limited.
In the case of a green roof that is visible from surrounding buildings, however,
benefits may accrue to neighbouring properties. In this case, an appropriate
comparable would be the value of having a view onto an at-grade park or woodlot.
Accessibility to the rooftop would not be a significant consideration in this case.
Where:
hv = height of the building with a view onto the green roof (storeys)
Where:
Where:
Let:
F = 0.07 when 0 ≤ d ≤ 5 m
Where:
The property value benefit for each individual property (bn) must be calculated
using the appropriate formula for the given case – i.e., recreational or productive
rooftop garden, nearby property, or property with a view. In cases where more than
one formula applies, both values should be calculated but only the larger of the two
should be used in the summation.3 For example, if a building affords views onto a
directly adjacent productive rooftop garden, both the productive rooftop garden
formula (7.1.3) and the view onto a green roof formula (Error: Reference source not
found) apply. The benefit attributed to proximity to a productive garden will clearly
3
It is unknown whether these two benefits are additive. In such cases, it is common practice to use the larger of
the two benefits.
be larger than that attributed to having a view onto it and should therefore be used
in the area wide benefit summation.
7.2 Marketing
Green infrastructure in general and green roofs in particular not only increase the
monetary value of a property due to proximity benefits, but may also improve the
marketability of real estate. The mass media and the public’s interest in
environmentally friendly products and services is increasing rapidly in Canada.
Green roofs and other green infrastructure on or near a building can therefore be
considered as a marketing amenity that increases a development’s exposure and
enhances the absorption rate of its units.
Applying the comparable costs methodology, one way of estimating the marketing
benefits of green infrastructure would be to assess the value of the publicity gained
as a direct consequence of green infrastructure investments. The two Canadian case
studies below illustrate green infrastructure and green roofs’ marketing potential.
The marketing benefits of green roofs will depend on a number of factors that are
unknown in advance or difficult to quantify, such as the current interest of local
media in green infrastructure and green buildings. Nonetheless, as the case studies
suggest, the marketing benefits can be estimated based on the value of the publicity
received due to the presence of the green roof in the project. The value of the free
publicity received can be estimated by comparison to the cost of advertizing in three
media: radio, television, and print. The cost for each of the three media is broken
down into the production cost plus the cost of running the ad. The former can be
assumed to be constant as it is a onetime cost. The latter is the cost of having the ad
aired on radio and television and printed in newspapers.
The value of free publicity can in principle be estimated according to the following
formula:
Where:
A sample of average advertising costs for the three media are summarized in Table 3
below. Where data was unavailable, costs are estimated. For the cost of television
ads, a cost of US$10 per 1,000 viewers was assumed.
Table 3 - Average cost of radio, television, and newspaper advertizing in selected cities
2. A factual news report on the subject of the green roof project is equivalent
minute-to-minute to a television spot; the duration of the news report should
be rounded down to the nearest 30 second increment (e.g., a 2:09 news
report is rounded down to 2:00 and therefore equivalent to four 30 second
spots).
1. In a factual article whose main subject is not the green roof project, each
sentence in which the project is mentioned is worth one column inch.
2. A factual article whose main subject is the green roof project is worth double
the number of column inches taken by the article
To help assess the productivity and monetary value of urban agriculture, we have
compiled some case studies from Canada and the US:
Table 4 below summarizes key information from the examples above that included
monetary values for agricultural or horticultural output. 5 To the data taken from the
examples, we have added the duration of the growing season for each location and
we have standardized all monetary values to be in 2008 Canadian dollars. To be able
to compare data on gardens of different sizes and in different climates, we have
calculated the mean productivity per unit of area per month of growing season. The
data suggest that the productivity of outdoor rooftop gardens ranges between
$20,000 and $200,000 per hectare per growing month. It appears that mixed fruit
and vegetable gardens are at the low end of the productivity range while gardens
focused more on flowers, herbs, and lettuces are at the higher end.
5
This table brings together at-grade and rooftop garden information. We assume that rooftop gardens have
yields similar to at-grade gardens under similar conditions.
flowers, herbs
* Converted to 2008 CAD.
We propose the value of the food production benefit be estimated using the
following formula:
Where:
P = productivity ($/m2•month)
When using the hedonic pricing technique, the cost of noise is measured by the
Noise Sensitivity Depreciation Index (NSDI), which represents the average
percentage decrease in total property value per 1-decibel increase in noise level
above a baseline level. Typically, the cost of aircraft and road noise pollution is
calculated above a 55 dB baseline. This implies that noise levels below this
benchmark do not cause any depreciation of property value. Bateman et al. (2000)
have compiled lists of NSDIs for road traffic and air traffic noise based on the
findings of studies from the US and abroad. Road traffic NSDIs range between 0.08%
and 2.22% of property value per decibel and air traffic NSDIs range between 0.29%
to 2.3% of property value per decibel. Statistical analysis of these results showed an
average NSDI of 0.64% for road traffic pollution and 0.33% for air traffic pollution.
Navrud (2002) reports that NSDIs will be higher where households are relatively
wealthy or where levels of sound pollution are relatively higher.
Sound attenuation provided by a green roof will depend on the properties of the
chosen substrate and on the substrate’s thickness. In the absence of data on the
noise attenuation properties of different substrates with different thicknesses, we
propose a low (5 dB attenuation) and a high scenario (13 dB attenuation) based on
Connelly & Hodgson’s (2008) findings on the sound attenuation of 75 mm and 150
mm green roof substrates. The aforementioned findings are those for low- and mid-
range frequencies; we assume that most ambient noise in an urban setting falls into
this category. We assume that a green roof would primarily reduce noises from
overhead sources, such air traffic and elevated roadways and trains; it would have
little or no effect on street level traffic noise. Thus, the benefit would only accrue to
properties affected by overhead noise. Based on the findings of Bateman et al
(2000), for properties near airports or under airport flight paths, we propose using
7
Contingent valuation studies measure the willingness to pay per person, whereas Exposure Response
Functions (ERF) express the cost per household. To convert the results of a valuation study to an approximate
ERF, the results can be multiplied by the mean household size. In Europe, mean household size is 2.16 (Navrud,
2002); in the US, it is 2.6 (US Census Bureau, 2006); and in Canada it is 2.5 (Statistics Canada, 2007).
an NSDI of 0.33%; for properties near elevated roadways or railways that are above
roof level, we propose using an NSDI of 0.64%.
We also assume that a green roof would only affect noise levels only on the top floor
of the building. We therefore assume that only the portion of the property value
represented by the top floor increases in value. For the purpose of estimation, we
assume that each floor is worth an equal portion of the total property value. Hence,
the value of the top floor is the total property value divided by the number of
storeys.
We propose the value of the sound attenuation benefit be estimated using the
following formula:
Where:
Less peak runoff means that new, conventional stormwater retention and
conveyance systems can have a smaller capacity or existing systems can support
more development before being upgraded, which translates to lower capital
expenditures for developers or municipalities, depending on who pays for new
stormwater infrastructure in the given context. Municipalities also stand to derive
ongoing benefits in terms of reduced operating costs related to storm management
infrastructure – less infrastructure means lower operating costs. Reducing the peak
volume of runoff and increasing on-site re-absorption of stormwater helps to
prevent water pollution. As runoff washes over various surfaces, especially
impermeable surfaces such as road and parking, it picks up particles and various
pollutants, which without mitigating measures end up draining into and polluting
local waterways. Thus, by reducing the volume of runoff, green roofs can at least
partially obviate pollution control measures. By reducing the amount of stormwater
conveyed off-site, which causes additional swelling of local bodies of water during
storm events, green roofs can also at least partly obviate the need for erosion
mitigation measures.
In a recent lifecycle cost-benefit analysis of green roofs, Carter and Keeler (2008)
looked at the financial dimensions of several benefits, including stormwater
management. They estimated the costs and benefits per square meter of an
extensive green roof, with a 7.62 cm (3 inch) layer of growing media, assuming a 40-
year reroofing cycle. The test site for which the estimates are calculated is the
Tanyard Branch watershed, which covers much of the central area of Athens,
Georgia. The test site has 53.8 % impervious land cover, with rooftops accounting
for 15.9% of the total land cover. Data on the water retention capacity of the green
roof was obtained from a test plot located on a rooftop on the University of Georgia
campus. The 7.62 cm vegetated layer assumed in the test scenario can hold 4.27 cm
of rainfall (or 42.7L of water per m2 of roof). Published retention and one-time cost
data for stormwater best management practices (BMPs) (EPA, 1999) is used to
determine the cost for an equivalent amount of rainwater retention at-grade given
the available land cover in the watershed. A combination of bioretention areas,
porous pavement, and sand filters would cost US$212.15/m 3 of runoff treated,
assuming an equal distribution of these three BMPs. The avoided cost is therefore
US$9.06/m2 of green roof.
8
Roofs account for only a fraction of the total area of the site – i.e., 4.4 ha of 17.4 ha. The reduction in runoff
occurred only on the roofs; the volume of runoff remains the same elsewhere. Hence, site wide, the overall
reduction is much smaller than it is on the roofs themselves.
including the cost of land and maintenance costs. Thus, Cunningham concludes that,
in terms of water retention, green roofing is about half as expensive as underground
retention basins. According to his calculation, stormwater retention by means of
extensive green roofing is about 25-fold more expensive than using a conventional
stormwater retention pond.9
The City of Waterloo (2005), in a report on the feasibility of green roofs, valuated a
number of related costs and benefits. In its calculations, the City assumed that
stormwater management, whether by means of conventional infrastructure or a
green roof, helps control both the quantity and the quality of runoff. In terms of
quantity, stormwater management infrastructure reduces the volume of runoff by
retaining and storing a certain amount of stormwater. Assuming that conventional
stormwater storage infrastructure costs C$42/m3 and that an extensive green roof
holds 37L/m2, it was estimated that the stormwater retention benefit provided by
green roofs is worth C$1.56/m2.
In terms of quality of the runoff, the City of Waterloo estimated that, at a cost of
C$42/m3 of stormwater, conventional stormwater infrastructure for pollution
control costs C$0.55/m2 (C$5,460/ha) of serviced land. Assuming that green roofs
reduce pollutant loading in stormwater by 90%, the one-time value of the runoff
quality benefit is C$0.49/m2 (C$4,914/ha). However, the authors point out that the
values for the retention and pollutant reduction benefits are not additive because
stormwater management infrastructure provides both benefits simultaneously.
Therefore, only the benefit with the higher value is considered.
10
Some municipalities in North America assess stormwater fees, independent from fees or taxes for water and
wastewater services. In some cases, the municipality provides stormwater fee discounts to property owners
who implement recognized forms of on-site stormwater management, including green roofs.
service, the one-time value of the erosion control benefit is C$0.51/m 2 of green roof,
in addition to the other one-time stormwater benefits.
Banting et al (2005) use the pollutant reduction and erosion reduction benefits
calculated by the City of Waterloo to estimate the one-time value of stormwater
benefits accrued to the City of Toronto if all of its flat rooftops (4,984 ha) were
extensively greened. For the value of stormwater retention, they use their own
estimates, which range from C$0.95/m2 to C$26.42/m2. The estimates are based on
the cost of providing equivalent stormwater retention using the cheapest up to the
most expensive BMPs. They use the same values for pollutant reduction
(C$0.55/m2) and the same erosion mitigation (C$0.51/m2) values as the City of
Waterloo. However, they discount pollution mitigation provided by green roofs by
50% rather than by 10%, as the City of Waterloo did and they consider the pollution
benefit to be independent of the other benefits and therefore additive. The total
value of the benefit, which is a sum of the retention, pollution mitigation and erosion
control benefits, is in the range of C$1.73/m2 and C$27.20/m2. If all 4,984 ha of flat
rooftops in Toronto were extensively greened, a one-time benefit worth
C$41,800,000 and C$118,000,000 in avoided infrastructure costs would accrue to
the City.
We propose the value of the storm water retention benefit be estimated using the
following equation:
Where:
Air pollution’s impacts on human health entail significant albeit indirect costs.
According to the Ontario Medical Association (OMA) (2000), air pollution related
health problems have the following economic consequences: (1) cost to the health
care system; (2) cost due to lost productivity in the workplace; (3) economic value
of pain and suffering due to pollution induced illnesses; and (4) economic damages
associated with premature death. As the OMA points out, the first two are out-of
pocket expenses for taxpayers. The air pollution mitigating benefits of green roofs
and other green infrastructure therefore accrue to society at large in the form of
avoided health care costs.
In the 1990s, the New York State Utilities Commission estimated the health care
costs attributable to several atmospheric pollutants, including nitrogen dioxide
(NO2), sulfur dioxide (SO2), carbon monoxide (CO), particulate matter of 10
micrometers or less (PM10), and ozone (O3) (Kowal, 2008) (see Table 5). These
estimates were incorporated into the Urban Forests Effects (UFORE) computer
model to calculate the value of the pollution removal benefit provide by trees and
other vegetation in urban areas. The UFORE model was developed to calculate the
pollution removal capacity of urban vegetation, and its monetary value. Pollution
removal calculations, or downward pollutant flux, consider several factors. The key
factors are pollutant deposition velocity, which is related to wind, and the
concentration of pollutants at the given location. Other factors include the length of
the in-leaf season, levels of precipitation, temperature and other meteorological
variables (Nowak and Crane, 1998).
Currie and Bass (2008) used UFORE to explore the pollution mitigating capacity of
green roofs and green walls. Field data was collected from 72 circular plots, each
400m2 and having a different distribution of vegetation, in the Midtown area of
Toronto. The data was fed into the UFORE model to estimate the 0 3, S02, N02, C0 and
PM10 removal capacity of the current vegetation in the study area, to be used as a
baseline scenario, and that of six hypothetical vegetation scenarios. The hypothetical
scenarios either added new vegetative elements to the study area, such as green
walls (i.e., juniper hedges), extensive and intensive green roofs, or subtracted
existing vegetative elements, such as trees and shrubs. The difference between the
baseline scenario and each hypothetical scenario was taken to be the pollution
mitigating capacity of the individual vegetative element that was added or removed
in the given scenario.
The key findings of the study were that, while trees clearly have a greater pollution
mitigating capacity, shrubs and grasses, which can be readily planted on flat
rooftops, can nonetheless have a very substantial effect on air pollution and a
significant monetary value. Covering all flat rooftops, equivalent to about 20% of all
roof surfaces in the study area, with a grassy vegetated surface would augment the
pollution mitigation provided by existing trees and shrubs by as much as 10% and
be worth US$17,481 a year in terms of avoided healthcare costs. Based on the
results of Currie and Bass’s study, Banting et al. (2005) calculated the annual
monetary value of extensive green roofs in Toronto to be about US$0.0394/m 2
(C$0.0541/m2 in 2008) of extensively vegetated roof area. If all flat rooftops across
the City of Toronto (4984 ha) were extensively greened, the annual cost savings
attributable to reduction in air pollution would amount to US$1,970,000
(C$2,700,000 in 2008).
Yang, Yu and Gong (2008) quantified the volume of air pollution mitigation provided
by green roofs in Chicago. They obtained detailed data on 71 out of some 170 green
roofs, totaling 19.8 ha. Aerial photographs of the roofs were analyzed to determine
the distribution of different types of surfaces on the green roofs. It was found that
63% of the green roofs’ aggregated area consisted of short grasses, 14% of large
herbaceous plants, 11% of trees and shrubs, and the remaining 12% of various
structures and hard surfaces. A pollutant deposition model for big-leaf plants
employing atmospheric data collected in Chicago over a one-year period were used
to estimate the absorption of four principal air pollutants (SO 2, NO2, PM10, and O3) by
each of the three observed types of vegetation (summarized in Table 6). Yang, Yu
and Gong’s (2008) results can be combined with the health cost data cited by Kowal
(2008) to calculate the value of the pollution mitigation provided by each type of
plant (see Table 7).
As suggested by the studies cited above, the critical determinants of a green roof’s
capacity to mitigate pollution and yield health benefits include its area and the mix
of plant species that is used, as some species absorb more pollutants than others.
Other factors include the levels of air pollution at the given location and the climate.
In terms of the latter, the pollution mitigation provided by the green roof may be
limited outside the growing season, particularly if it is covered with snow. The
examples above, from Toronto and Chicago, estimate pollution mitigation of green
roofs in locations with relatively short growing seasons (about seven months) and
long, snowy winters. In places with a longer growing season, the annual volume of
pollution absorbed is likely to be higher given the same plant species. We take a
seven-month growing season to be the baseline case.
Using the values for the pollutant removal health benefit that we have calculated
using Yang, Yu and Gong’s (2008) and Kowal’s (2008) findings (Table 7), we
propose the following formula for estimating the annual value of the health benefit
of pollution mitigation provided by green roofs:
Where:
Hsg = health benefit for short grass pollution absorption ($/m 2•year)
The above equation can only be applied if the distributions of the three categories of
vegetation within the green portion of the roof are known. If the distribution is
unknown, the estimate will lie somewhere between a lower bound defined by a
green surface area composed entirely of short grass (the least absorbent) and an
upper bound defined by a green surface composed entirely of deciduous plants (the
most absorbent).
Where:
Where:
All photosynthesizing plant species have the capacity to capture and store
atmospheric carbon dioxide (CO2). Trees and other plants in urban environments
are no exception. Thus, a further benefit of green roofs and other green
infrastructure is their ability to capture and store – i.e., sequester – carbon dioxide.
Valuating the carbon dioxide sequestration benefit of green infrastructure entails
estimating the marginal social cost of damages that would have been caused due to
temperature increases if not for the sequestration carried out by the vegetation
involved.
Table 8 - Carbon sequestration values per hectare for Greater Golden Horseshoe
Greenbelt land types
Forest Grassland Agricultural Lands
11
Annual carbon uptake is a measure of the average amount of carbon sequestered per year by given plant or by
a vegetated area. Carbon storage is the total amount of carbon sequestered over a longer period – for an
individual plant, over its lifetime.
Cropland Idle land Hedgerows Orchards
Stored carbon $919 $213 $332 $317 $328 $298
Annual carbon uptake $39.11 $28.46 N/A $28.59 $28.59 $28.59
Source: David Suzuki Foundation, 2008
Our formula for estimating the value of sequestered carbon is based on the findings
of the David Suzuki Foundation (2008). We chose these findings because they
provide sequestration values for types of vegetation other than forests, namely
grassland and croplands, both of which are more likely to be found on a green roof
than trees. We assume that the annual carbon uptake of these types of vegetation is
the same on a green roof as at grade. As the methodologies reviewed estimate the
sequestration value of trees on a large scale basis (square kilometres or hectares),
and because the values are relatively small, we use hectares rather than meters as
units of area.
We propose the following formula for calculating the value of annual carbon
sequestration provided by a green roof:
Where:
Note:
Using the David Suzuki foundations sequestration data, and assuming that
productive agriculture on green roofs resembles hedge rows or orchards, we obtain:
Where:
Where:
The last section provided valuation methodologies that could be used to quantify
several of the “soft” benefits associated with green roofs. In the following section,
we apply these methodologies to five case studies in order to estimate the actual
benefits associated with these green roofs under realistic conditions. The
information for these scenarios is drawn from sources such as Steven Peck's book
Award Winning Green Roof Designs (2008), project web sites, and interviews with
architects and developers.
The case studies were chosen in order to represent a variety of building types and
locations. Together, they provide opportunities for the use of all the calculation
methods presented in Section 3 of this report. Not all of the benefits apply to each
case study; only those benefits that apply to each case study and for which data was
available are included in the write-ups.
For each case study, we present key features of the project and associated green
roof, a summary of the development context and process, and the benefit
calculations themselves. We conclude each case study with some observations about
the calculations, which are designed to help the reader interpret the results.
The case studies use a consistent notation to signify variables that go into the
calculation of benefits. Table 18 summarizes the variables needed as inputs into the
equations and the notation used in the case studies.
Table 9 - List of benefits, input variables, notations, and units
benefit input variable notation unit
property value
property value v dollars
(recreational garden)
property value neighbouring property value vn dollars
(productive garden) neighbouring property distance dn meters
property value property with view value vv dollars
(property with view) property with view height hv meters
green roof height h stories
food production growing season g months
food production area af square meters
number of storeys 3
A notable feature of the 901 Cherry building is that it is located under the flight path
of air traffic landing at the San Francisco International airport and, as such, is
exposed to considerable overhead noise. The green roof helps provide an acoustic
barrier that attenuates sound transmission from aircraft taking off from and landing
at the airport.
8.1.3 Benefits Calculations
benefit applicable comment
property value
stormwater retention
air quality
GHG sequestration
8.1.4 Variables
See Table 9 for a definition of the variables.
v = US$55,545,399
h = 3 stories
a = 6,400 m2
g = 12 months
8.1.5 Calculations
8.1.5.1 sound attenuation
Note: only the low scenario is calculated as it is known that the green roof is covered
only with short grasses
Note: only the low scenario is calculated as it is known that the green roof is covered
only with short grasses
8.1.7 Observations
The value of the sound attenuation benefit is estimated to be between
$303,829 and $783,101. The value of the benefit is likely to be in the upper
range given that the thickness of the green roof substrate is 15.2 cm. This
corresponds almost exactly to thickness of the thicker, 150 mm substrate
tested by Connelly and Hodgson (2008), which was determined to attenuate
sound by 13 dB and which is the basis for calculating the upper bound of the
value of this benefit.
The value of the stormwater benefit is estimated to be between $9,216 and
$293,248. Given that there is relatively little precipitation in the San
Francisco Area, and given that the building is in a relatively low-density
suburban setting, conventional stormwater infrastructure would not be
particularly expensive in this case. Thus, the value of the stormwater benefit
is likely to be in between the bottom and middle of this range.
number of storeys 23
The southern portion of the terrace was converted to an herb garden in 1994 at a
cost of C$25,000. The herb garden was implemented on the south terrace because
sun exposure was not sufficient elsewhere. The garden is maintained year round
and harvested between late march and late fall by the hotel’s restaurant staff. The
garden is divided into 11 plant beds in which over 60 species were grown in the
2008 season. The majority of the species grown are herbs but the garden also
produces leafy green vegetables such as chard, arugula, bok choy, and Chinese
greens, as well as a few small fruits such as strawberries, plums, and grapes. Several
species of decorative and edible plants are grown as well (Jamieson, 2008). The
produce is used primarily in the hotel restaurant but consumers also include hotel
staff and patrons. The garden also provides habitat for a large number of small
birds.
8.2.3 Benefits Calculations
benefit applicable comment
property value
food production
stormwater retention
air quality
GHG sequestration
8.2.4 Variables
See Table 9 for a definition of the variables.
v = C$116,078,000
vv = C$119,688,000*
h = 3 stories
hv = 20 stories*
a = 195.1 m2
g = 8 months
* PricewaterhouseCoopers Place at 250 Howe Street, directly across from the herb
garden (source: City of Vancouver)
8.2.5 Calculations
8.2.5.1 property value
Low scenario
High scenario
8.2.5.3 stormwater retention
8.2.7 Observations
The property value benefit of $7,593,888 that accrues to the hotel seems
realistic. The PricewaterhouseCoopers Place across the street from the herb
garden was calculated to receive a boost in property value on the order of
$4,409,406, also seemingly realistic.
The value of the air quality benefit is estimated to be between $11.54 and
$18.73. Given the prevalence of leafy plants, the value is likely to tend
towards the upper range.
number of storeys 4
The 401 Richmond roof garden has attracted a considerable amount of attention
from the media in Toronto, providing publicity for Urbanspace Property Group, the
company that owns and manages the building, and indirectly for the building’s
tenants. In 2008, the City of Toronto awarded Urbanspace Property Group a Green
Toronto Award for the 401 Richmond roof garden.
property value
marketing
air quality
GHG sequestration
8.3.4 Variables
See Table 9 for a definition of the variables.
v = C$13,923,000
vv = C$296,500*
g = 7 months
pradio = 0 note: there has been no known radio coverage of 401 Richmond
tradio = 0
* Sale price of a condominium loft unit at 388 Richmond West with a view onto the
401 Richmond roof garden (source: REMAX)
8.3.5 Calculations
8.3.5.1 property value
v=v x +b
and
b=0.11⋅v x
therefore
v=v x +(0.11⋅v x )
v=1.11⋅v x
v
v x=
1.11
(13,923, 000)
¿
1. 11
¿12 ,543,243
b=0.11(12 ,771 ,513 )
¿1,379 , 756
8.3.5.2 marketing
Total 2.3
Our
picture 5.5” X 3.5” 0.5 0.1 1.0”
Neighbourhood Arts Feature
The Liberty
article 3.5” 2 0.1 0.7”
Gleaner "Green groceries"
Your Source
article 8.5” 2 0.1 1.7”
Magazine “Rooftop gardens”
Total 190.4”
$1,379,756
property value
one time
(host building)
property value
one time $24,482
(neighbouring condo unit)
8.3.7 Observations
The property value benefit of $1,379,756 that accrues to the owner of 401
Richmond seems realistic. The sale price of a condominium unit in the
District Lofts building across the street was estimated to include a benefit of
$24,482 attributed to its view onto the 401 Richmond rooftop garden.
Since the construction of the rooftop garden, the 401 Richmond property has
enjoyed an estimated $83,126 in free publicity. The estimate appears to be
realistic.
The air quality benefit is estimated to be worth between $43.79 and $71.01.
Given the prevalence of bushes and vines and the relatively small area of the
extensive portion of the roof, the value is likely to tend towards the upper
range.
number of storeys 1
The garden’s peak growing season is between May and August. Species grown have
so far included: amaranth, basil, buckwheat, collard greens, eggplant, green beans,
horseradish, various tomatoes, lavender, mushrooms, mustard greens, onions, bell
and chili peppers, potatoes, sage, snap peas, thyme, wheat, and zucchini. The species
are rotated depending on the season. In addition, burdock, cleome, clover, cosmos,
dandelions, marigolds, and a variety of grasses have been planted to help establish
the growing medium and attract beneficial insects. The produce grown during the
2007 and 2008 seasons was mostly distributed among project volunteers and some
was sold at the store below (UHC, 2008).
According to the UHC, the Rooftop Victory Gardens have become the “poster child”
for the City of Chicago's Green Roof Grants Program. The project has been the
subject of news reports in local, national and even some international media (UHC,
undated).
8.4.3 Benefits Calculations
benefit applicable comment
property value
food production
stormwater retention
air quality
GHG sequestration
8.4.4 Variables
See Table 9 for a definition of the variables.
v = US$107,871
vv = US$433,856*
d = 11 m
h = 1 storeys
hv = 2 storeys*
a = 163.5 m2
g = 7 months
* Four-unit residential property at 1214 W Norwood St., directly behind the True
Nature Foods property (source: Cook County Assessor’s Office, 2009)
8.4.5 Calculations
8.4.5.1 property value
Low scenario
High scenario
number of storeys 18
The Louisa building is composed of a large podium at the base, which houses the
retails spaces, and a tower set at the back of the podium, which contains the bulk of
the apartments. The green roof is situated on top of the podium and can therefore
be viewed directly from at least half of the apartments in the tower. The green roof
features both extensive and intensive components. The larger (749.8 m2) portion of
the roof is an accessible recreational rooftop garden with intensive vegetation. The
garden is flanked on either side by non-accessible extensive green roofs (292.5 m 2
each). These are two storeys higher than the garden as they sit on top of two-storey
townhouse units facing into the garden. Both the intensive and extensive portions
are planted with drought-tolerant native species, which can withstand Portland’s
relatively dry summers with minimal watering (Peck, 2008).
The Louisa was built to meet the US Green Building Council’s strict LEED criteria for
new buildings. Its intensive and extensive green roofs are among its many green
features, which have earned it a rating of LEED-Gold – the second highest
sustainability rating given by the Green Building Council. In the 2007, the Green
Roofs for Healthy Cities annual award for best intensive residential green roof
project was conferred upon the Louisa.
8.5.3 Benefits Calculations
benefit applicable comment
property value
stormwater retention
air quality
GHG sequestration
8.5.4 Variables
v = US$56,924,000.00
vv = US$56,924,000.00
h = 2
hv = 18
g = 9 months
8.5.5 Calculations
8.5.5.1 property value
property value
one time $2,189,385
(view)
$5,641,117
property value
one time
(accessible recreational garden)
8.5.7 Observations
Two types of property value benefits can accrue to the Louisa property: a
benefit due to having an accessible recreational rooftop garden, worth
$9,487,333; and a benefit resulting from close to half the units in the Louisa
having a view onto the rooftop garden, worth $2,189,385. It is plausible to
argue that these two benefits are additive. If the rooftop were on top of the
building, affording no views from within the building itself, we would still
estimate a property value of benefit of $9,487,333. The two benefits added
together would thus yield a total property value benefit of $11,676,718.
The stormwater management benefit is estimated to range between $1,922
and $61,156. Given that the building is located in a very dense urban
environment with very high land values, low cost stormwater management
solutions (which are land intensive) are not an option. For this reason, the
value of the benefit is likely to be at the upper end of the range in this case.
The air quality benefit is estimated to be worth between $88.89 and $144.15.
Given that the roof is semi-extensive, with both mixed grassy and leafy
vegetation, the value of the benefit is likely to tend towards the middle of the
range.
The GHG sequestration benefit is estimated to be worth between $3.80 and
$5.22. Given that the roof is semi-extensive, with both mixed grassy and leafy
vegetation, the value of the benefit is likely to lay in the middle of the range.
9 Conclusions
This report has provided evidence that soft benefits produce economic advantages
for individual property owners, municipalities, and society at large. Despite the fact
that the benefits depend on the local context, we have provided heuristic methods to
estimate the economic value associated with seven soft-benefits. These are methods
that can be used by property owners, developers, architects, municipal officials, and
other stakeholders with information that is often readily-at-hand. The reader should
keep in mind the assumptions that had to be made in order to arrive at these quick
calculation methods. Some of these assumptions, along with the beneficiaries,
benefiting period, and a short statement of the valuation method appear in Table 11.
Error: view onto a green property owner* independent of area one-time up to 4.5%
Referen roof and/or neighbours property value
ce (portion above
source green roof)
not
found
7.1.1 recreational property owner independent of area one-time up to 11%
garden property value
7.1.3 productive garden property owner occupant access, one-time up to 7%
independent of area property value
neighbours public access, one-time up to 7%
(adjacent) independent of area property value
neighbours (150 public access, one-time up to 5%
m) independent of area property value
neighbours (300 public access, one-time up to 2%
m) independent of area property value
7.2 Marketing property owner comparable to free one-time see Table 3
publicity
7.3 Food production tenants, property excludes labour and ongoing $2-$20/m2
owner material costs per growing
month
7.4 Sound attenuation property owner affects top floor one-time 1.6% to 4.3%
only, each floor is property value of
worth an equal top floor
portion of the total
property value,
independent of area
but assume
extensive coverage
7.5 Stormwater retention developer, 42.7L/m2 retention one-time $1.44/m2 to
municipality capacity $45.82/m2
7.6 Air quality municipality, ongoing $521/ha to
region $839/ha per year
7.7 GHG sequestration municipality, ongoing $28/ha to $39/ha
region, planet per year
*If the green roof can be seen from at least part of the host property
The case studies presented in this report show that the proposed valuation
methodologies can be applied in real-life situations without requiring large (or
difficult to obtain) data inputs. In general, the valuations returned by applying the
methodologies seem to be of a reasonable magnitude. The observations presented
at the end of each case study should help the reader interpret the results and judge
how best to apply the methodologies in their own context.
Among the one-time benefits proposed here, the property value benefits are by far
the most significant. Properties with accessible green roofs are subject to a 11%
property value premium, while those with rooftop food gardens gain 7% in property
value. Neighbours of both types of green roofs also stand to benefit significantly
from their presence. Buildings with views onto a green roof could gain up to 4.5% of
property value (depending on how many floors have a view of the greenroof), while
those adjacent to rooftop food gardens could gain from 2% to 7% (depending on
distance from the building with the rooftop garden). It should be noted that the sum
of the all the property value gains accruing to neighbouring properties could be
considerably larger than the value of the benefit accruing to the host property.
The value of the stormwater management benefit varies considerably when viewed
as a fraction of property value. In the 401 Richmond case, for example, it is
estimated to be worth between 0.01% and 0.28% of property value, whereas in the
case of the True Nature Foods Victory Garden, it is estimated to be worth 0.2% to
6.9% of the property value. This benefit is not tied to property value but rather to
the area of the green roof; True Nature Foods has low property value but a relatively
large roof and the stormwater benefit is therefore much larger relative to property
value.
Where ongoing benefits are concerned, the food production benefit is much more
valuable than the air quality and GHG sequestering benefits, according to our
methods of estimation. We propose that the value of the food produced on a rooftop
garden is worth $2 to $20 per square metre per month in the growing season. As
most of the North American population lives in places where the growing season is
at least 6 months long, the benefit is therefore worth at the very least $12/m 2 of
rooftop growing area per year. In places with a year-round growing season, such as
in the southern coastal states, the benefit could be worth up to $240/m 2 per year. In
contrast, the air quality benefit is worth between $0.0521/m 2 to $0.0839/m2 per
year and the GHG sequestration benefit is worth $0.0028/m 2 to $0.0039/m2 per
year.
The difference between food production and air quality/GHG benefits is well
illustrated by the two case studies that feature rooftop food production (Case
Studies 2 and 4). In Case Study 2, on the Fairmont Waterfront Hotel herb garden,
food production is estimated to be worth $3,121 to $31,210 per year, while air
quality improvement is worth $11.54-$18.73 per year and GHG sequestration is
worth a mere $0.56-$0.76 per year. In Case Study 4, on the True Nature Foods
Rooftop Victory Garden, food production is estimated to be worth $2,289 to $22,890
per year, while air quality improvement is worth $8.47-$13.73 per year and GHG
sequestration is worth a mere $0.47-$0.64 per year.
Given how small the air quality and GHG sequestration benefits are, it is almost
meaningless to include them in an assessment of the benefit values for individual
green roofs. Both of these benefits would be more meaningful if calculated for
numerous green roofs covering a substantial portion of a neighbourhood or city. For
example, as reported above, Bating et al (2005) calculated that if all flat rooftops
across the City of Toronto were extensively greened, the annual cost savings
attributable to reduction in air pollution would amount to US$1,970,000
(C$2,700,000 in 2008).
Readers are reminded that the methodologies offered here are heuristic in nature;
they are rough estimations based on a number of assumptions that are reasonable
in most cases but may not be applicable in specific contexts. Changes in the
assumptions will of course lead to a different evaluation of benefits. Also, the report
provides calculation methods for a range of greenroof conditions. These are meant
to serve as benchmarks only and of course do not cover all potential situations. The
user is asked to use their own best judgment as to whether and how the
assumptions made and range of conditions covered in this report can be usefully
applied or adapted to their own unique situation.
To our knowledge, this is the first attempt in the growing literature on green roofs
to offer a means for calculating the value of a range of soft benefits associated with
the use of the technology. Clearly, however, it is not the last word. Future research
may not only allow us to refine the approaches offered here but to expand the range
of soft benefits covered to include, for example, habitat creation and community
building. If this report has helped put us on this path, then it has served its purpose.
Interviewees
Michelle Bates-Benetua
Lettuce Link Program Manager
Solid Ground
michelleb@solid-ground.org
206-694-6754
Martine Desbois
Coordinator of Sustainability Initiatives
Dockside Green
mdesbois@docksidegreen.com
250-360-1100 x 227
Neil Jamieson
Executive Sous Chef
Fairmont Waterfront
neil.jamieson@fairmont.com
604-691-1991 x1611
Emily Lake
Director of Urban Agriculture
Urban Habitat Chicago
emilyhlake@gmail.com
Robert Lotz
Advertising Sales Representative
103.9 PROUD-FM
robertlotz@hotmail.com
416-948-7944
Erin MacKeen
Communications Director
Urbanspace
erin@urbanspace.org
416-595-5900 x 25
Rich McDonald
P-Patch Program Manager
Department of Neighborhoods
City of Seattle
rich.macdonald@seattle.gov
206-386-0088
Sky Seeley
Sales Coordinator
Dockside Green
sky@docksidegreen.ca
250-380-7278
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