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A Policy Evaluation of Planting Street Trees in Morgantown, West Virginia: A Spatial and Benefit-Cost Analysis GIS Conference and Workshop 2004. Vishakha Maskey Graduate Research Assistant Vmaskey@mix.wvu.edu Division of Resource Management. Background Information:. Urban Forests
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A Policy Evaluation of Planting Street Trees in Morgantown, West Virginia: A Spatial and Benefit-Cost AnalysisGIS Conference and Workshop 2004 Vishakha Maskey Graduate Research Assistant Vmaskey@mix.wvu.edu Division of Resource Management
Background Information: • Urban Forests • Street trees, trees on the private property, and parks • Street Trees • Trees that are publicly owned • Are within 6 feet of the road
Overview of Tree Benefits: Ecological and Health Benefits through: • Air pollution removal • Carbon reduction, Oxygen production • Biodiversity maintenance • Stormwater management
Benefits cont. Social and Economic Benefits through: • Increase in aesthetic value (property prices) • Replacement value • Psychological value • Lower crime rate • Traffic safety
Social/Economic Cost Sidewalk and property damage Maintenance cost Planting and replacement cost Pollen allergies Ecological cost Hydrocarbon production Water consumption Displacement of native species Overview of Tree Costs:
Problem Statement: • Increased development and population pressure • Decreasing tree cover • Lack of planting and proper maintenance initiative due to unobserved benefits in the market • Investment decisions dependent upon costs of implementation
Why Morgantown, West Virginia? • Decreasing aesthetics of the city • Air quality problems • Initiatives from different governmental and non-governmental sectors • Many plantable spaces that need cost- effective decision on plantings
Objective of the Research: • Develop an infrastructure for planting street trees; • Facilitate decisions on future plantings with reliable monetary information on costs and benefits; • Generate a valid argument on planting decision.
Tree number Costs -Infrastructure - Planting -Maintenance -Removal Benefits Energy savings Pollution control Runoff Control Carbon Dioxide Water Conserved Benefit-Cost Analysis Net Benefits B/C Ratios IRR Conceptual Framework:
Research Method Application: • Spatial Analysis to develop infrastructure • Benefit- Cost analysis to facilitate policy decisions
Spatial Analysis: Categorized all streets in Morgantown into suitability Index with respect to soil type, slope and land cover: • Most suitable • Moderately suitable • Unsuitable
Benefit-Cost Analysis • Methodology: NPV= • Where NPV = Net Present Value, Years (t) = 0 …….40 • Discount Rate (i) = 7 %, • B= Total Benefit • C = Total Cost
Air Quality Benefits = $16 per tree Stormwater runoff reduction = $6.76 per tree Carbon dioxide reduction = $5 per tree Aesthetic Benefit = $17 per tree Energy Savings =$10 per tree These estimates are lower bound of previous researches done my McPherson in California. Fixed costs Planting Costs =$500 per tree Sidewalk and Curb Cost =$1,127 which includes equipment, material and labor cost Variable cost Maintenance Costs = $9.61 per tree Cost estimates are from Mr. Bill Rumble (City of Morgantown) and Dr. Cummings (Morgantown Tree Board) Benefit and Costs Per Year:
Estimates: • The net benefit per tree = $ 54.76 • Benefit-cost ratio = 2.25:1 • Net Present Value (NPV) of $20,491.30 • IRR (Internal Rate of Return) of 12%.
Conclusions: • The accounting of benefit and costs of planting 20 new trees seems feasible; • Positive net benefit should serve as argument for funding; • The costs and benefits are dynamic and projections may not be accurate.
Policy Recommendation: • Better City ordinance • Subsidies or payment for maintenance and replacement • Incorporating Citizen forester program • Training and information • More reliable benefit quantification required using computer based programs such as STRATUM, which quantifies benefits of street trees.