 |
 |
 |
|---|
Economics
The pressure of urban growth in New Zealand is an issue confronting a number of New Zealand towns and cities. Auckland Region, for example, is projected to grow by 435 000 people, or 36%, in the 20 years from 2001 to 2021. If suburban sprawl is to be limited, much of this growth will be in existing built-up areas with corresponding increases in housing density, impermeable surfaces (roofs, driveways, car parks, roads, etc.), and, if present trends continue, increased traffic volumes.
At the same time there are rising public expectations for environmental protection that among other things emphasise the need to improve water quality by reducing the quantity of contaminants discharged into waterways and the coastal marine area.
A survey of territorial authorities suggests the planned investment in stormwater system infrastructure and operation in the Auckland Region over the next 10 years is approximately $800 million (Price Waterhouse Coopers 2003). In contrast, estimates of the additional amount required to meet the requirements of the proposed Regional Air, Land, and Water Plan designed to address the effects of future urban growth ranges from $2.3 to $9.4 billion over 20 years (Boston Consulting 2004). Achieving the necessary level of investment is a major challenge for territorial authorities in an environment where the costs of upgrading infrastructure are largely borne by local ratepayers and where there is a perceived public expectation that cost increases for public services will be minimised.
Low Impact Urban Design and Development (LIUDD) offers an alternative to the conventional piped infrastructure, end-of-line treatment approach, potentially at lower total cost. The lack of locally applicable technical and financial data on the performance and acceptability of these systems is a major constraint to the uptake of LIUDD. In considering LIUDD as a means for efficiently delivering the mix of outcomes the community is looking for we need to ask a number of questions:
What are the direct costs of an LIUDD approach relative to a conventional approach – at a device level, in a subdivision, over a catchment, in a greenfield situation, in a brownfield situation? And how effective are LIUDD options at reducing runoff and contaminant loads?
Are there private benefits or costs that can be harnessed or taken into account? How much more or less will the purchaser or owner of a property pay for an LIUDD solution?
Are we taking into account all the costs associated with adopting new technologies? Research suggests there are considerable additional costs associated with the risk and uncertainty surrounding new innovations. How can we reduce these?
What is the value of the public benefits generated by an LIUDD approach? Are there additional costs to the community, e.g. increased maintenance? And, as a result, what level of expenditure of public money is warranted to facilitate LIUDD?
The goals of the economic component of the LIUDD research programme are therefore to:
- Determine the private and public benefits and costs of LIUDD from the perspectives of the developer, house buyer, local council and community.
- Develop and apply a range of economic tools to value the benefits of LIUDD, particularly savings in infrastructure costs and the value of improved on- and off-site performance.
To achieve these we have four work streams:
- Develop, test, and provide tools to estimate the costs and cost-effectiveness of installing and operating low-impact stormwater management devices and adopting low impact approaches at a neighbourhood and catchment scale.
- Identify and quantify the benefits and costs of LIUDD elements from the perspective of the property owner. more >
- Develop measures of the monetary value attributed to changes in environmental quality resulting from urbanisation and provide policy makers with estimates of the public willingness to pay for avoiding, mitigating, or remedying those effects. more >
- Develop pricing, incentive, and implementation policies that facilitate adoption of low-impact approaches and more sustainable water management. more >
We are also developing a series of case studies that will bring together elements from each of these work streams at the development or catchment scale.
Recent Publications
Vesely E. 2007. Green for green: The perceived value of a quantitative change in the urban tree estate of New Zealand. Ecological Economics 63: 605-615.
Ghosh S. 2006. Water, water, everywhere…Quantifying possible domestic water demand savings through the use of rainwater collection from residential roofs in Auckland, New Zealand. Urban Drainage Modelling and Water Sensitive Urban Design conference, 3-7 April 2006, Melbourne.
Mithraratne N, Vale R. 2006.
Life-cycle analysis of water supply system selection on typical New Zealand houses.
( 
0KB
)
The 5th Australian Conference on Life Cycle Assessment. 22 to 24 November 2006, Melbourne, Victoria, Australia..
Mithraratne N, Vale R. 2006.
Life-cycle impact of water supply system selection on typical New Zealand Houses
.
(
199KB
)
5th Australian Life Cycle Assessment Conference, Melbourne, 22nd-24th November 2006.
Vesely E. 2006. Life Cycle Costing - Addison Development Northern Block. Landcare Research Contract Report: LC0607/059. Prepared for Papakura District Council.
Recent Presentations
Andrew R, Vesely É 2005.
Evaluating stormwater management devices - the role of life cycle assessment
( 
391KB
)
Eason C, Dixon J, Krausse M, Vesely E, Sharp B, Kviberg K 2005.
Economics of LIUDD
(
595KB
)
presentation to ARC LID Seminar 24 November 2005
Vesely É, Heijs J, Stumbles C, Kettle D 2005.
The economics of low impact stormwater management - Glenncourt Place
(
646KB
)
Vesely É, Krausse M, Taylor A, Shaver E 2005.
Costing low impact stormwater devices
(
1MB
)
Links
New Zealand
International
- Costs and financial benefits of green buildings (
3203 KB). Report from California. - Costing Green: A comprehensive cost database and budgetting methodology. Mathiessen LF, Morriss P 2004. ( 368 KB).
- An economic analysis of costs of bioretention cells and stormwater ponds. (
151 KB) Ritu Sharma, Clemson University.
Contacts
 | Eva Vesely Email  |
Landcare Research | |
Phone: +64 9 574 4100 | |
| Details: Eva Vesely |
 | Michael Krausse Email |
Landcare Research | |
Phone: +64 9 574 4100 | |
| Details: Michael Krausse |
 | Shaun Awatere Email |
Landcare Research | |
Phone: +64 7 859 3700 | |
| Details: Shaun Awatere |
