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You win some, you lose some - compensating the loss of green space in cities taking heterogeneous population characteristics into consideration

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Abstract

The increased urbanization and human population growth of recent decades have resulted in the loss of urban green spaces. One policy used to prevent the loss of urban green space is ecological compensation. Ecological compensation is the final step in the mitigation hierarchy; compensation measures should thus be a last resort, after all opportunities to implement the earlier steps of the hierarchy have been exhausted. The compensation should balance the ecological damage, aiming for a “no net loss” of biodiversity and ecosystem services. In this study, we develop a simple model that can be used as tool to study the welfare effects of applying ecological compensation when green space is at risk of being exploited, both at an aggregate level for society and for different groups of individuals. Our focus is on urban green space and the value of the ecosystem service – recreation – that urban green space provides. In a case study we show how the model can be used in the planning process to evaluate the welfare effects of compensation measures at various sites within the city. The results from the case study indicate that factors such as population density and proximity to green space have a large impact on aggregate welfare from green space and on net welfare when different compensation sites are compared against each other.

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  • Nordström, Jonas & Hammarlund, Cecilia, 2021. "You win some, you lose some - compensating the loss of green space in cities taking heterogeneous population characteristics into consideration," AgriFood-WP 2021:3, Lund University, AgriFood Economics Centre.
  • Handle: RePEc:hhs:luagri:2021_003
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    More about this item

    Keywords

    Urban green space; Ecological compensation; Recreational value; Wellbeing; Utility; Welfare effects; Distributional effects;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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