Economic Benefits of Trees & Greenspace

Kathleen Wolf, Ph.D.Research Social Scientist

University of Washington (Seattle)School of Environmental and Forest Sciences

2016 Western Planner & Montana Association of Planners Joint ConferenceGreat Falls :: August 2016

Landscape

Community

Gardencredit: Ignacio Bunster-Ossa

Landscape

Community

Gardencredit: Ignacio Bunster-Ossa

SYSTEMS THINKING

AIRQUALITYSTORMWATER

WASTEWATER

SOLIDWASTE

CULTURALHERITAGE

BIOTA

EXERCISE&FITNESS

ACTIVEMOBILITY

CARBON

ENERGY

HEATISLAND

CONNECTVITY

SOCIALCAPITALALLERGENS

BMP’S

COMMUNITYIDENTITY

PUBLICART

NOISE

credit: American Planning Association

OutlineCommunity Economics

trees, landscape & property valueretail behavior & spendinghuman health economics

Forest/Resource Economics 101

Economic Value of Metro NatureMethods Challenges

Forest Products = market goodsexcludableidentifiable ownershipexpenses-revenues= profits

Trees/Green in Cities= public goodsnon-excludablemultiple “owners”expenses-returns?

-profits?

OutlineCommunity Economics

trees, landscape & property valueretail behavior & spendinghuman health economics

Yard & Street Trees

Value Increase Condition2% mature yard trees (greater than 9-inch dbh)3% larger street trees (up to 100’ away)3-5% trees in front yard landscaping 6-9% good tree cover in a neighborhood10-15% mature trees in high-income

neighborhoods

multiple studies: Green Cities: Good Health > Local Economics

Tree Retention In Development

Value Increase Condition18% building lots with substantial mature tree

cover22% tree-covered undeveloped acreage19-35% lots bordering suburban wooded

preserves37% open land that is two-thirds wooded

Parks & Open Spaceproximate principle

Value Increase Condition10% inner city home located within 1/4 mile of

a park17% home near cleaned-up vacant lot20% home adjacent to or fronting a passive

park area32% residential development adjacent to

greenbelts

Local Government Benefits

Civic Investment – Public Goodslike schools, emergency response, roads

l street trees average positive effect on house valuesl added up across Portland, Oregonl yields a total value of $1.35 billionl potentially increasing annual property tax revenues

$15.3 millionDonovan & Butry. 2010Landscape and Urban Planning

OutlineCommunity Economics

trees, landscape & property valueretail behavior & spendinghuman health economics

Trees & Retail Environments Research

Wolf, K.L. 2005. Business District Streetscapes, Trees, and Consumer Response. Journal of Forestry 103, 8: 396-400.

• Research Questions •trees and visual quality?trees and consumer behavior?trees and product pricing?

• Methods:mail out/in surveysnational or local sampleresidents/nearby city residents

partners: U of Washington, NGOs, business organizationsfunded by USDA Forest Service

Trees & Shopper Environments Research

Image Categories (sorted by ratings)

Full Canopymean 3.63

Pocket Parksmean 3.72(highest)

Scale : 1=not at all, 5=like very much, 26

images

IntermittentTrees2.78

EnclosedSidewalk3.32

No Treesmean 1.65(lowest)

(high - 3.72)

Place Marketing

Relationship Marketing3. Product Pricing

• higher willingness to pay for all types of goods

• higher in districts with trees – 9-12%

1. Place Perceptions• Place Character• Interaction with Merchants• Quality of Products

2. Patronage Behavior• travel time, travel distance• duration & frequency of visits• willingness to pay for parking

social science of consumer behavior

‘atmospherics’

retail & place marketing

“Companies stage an experience when

they engage customers in a

memorable way.”

summary

urban forests = human habitat

studies of trees in business districtsperception, preference & behaviordesign & place messaging/identitycustomer relationships

deeproot.com

Trees as Place-Makers

the Chenoggye freeway in Seoul~ 1970-2005

Chenoggyeon – 8.4 km, $900 M

initial public criticism!

The High Line :: June 2009

l between 2003 and 2011l nearby property values increased 103%

(despite the deep recession)l $2 billion was invested in

nearby properties development

ALPHA Awaji Landscape Planning & Horticulture Academy

typical retail street

in urban Japan

Namba Parks, Osaka

view from nearby hotel

interior retail space

ground level

small plazasretail entry

up-close nature experiences

place ofrespite

Namba Parksretail success & nature experience benefits

lessons learned?

social spacessmall rooms

variety within unity

Bainbridge Island, WA“main street”

outdoor roomssocial spacessense of welcoming

Austin, TX

South Congress Avenue

redevelopment district

public xeriscape

shared design & management

identity

affordable materials

message of renewal

OutlineCommunity Economics

trees, landscape & property valueretail behavior & spendinghuman health economics

WHO Health DefinitionA state of complete

physical, mental, and social well-being and not merely the absenceof disease or infirmity (1946)

Role of city trees and forests?Science and evidence re: environmentNot a panacea, but important!

Determinants of Health

Green Cities: Good Health

Sponsors: USDA Forest Service, U&CF ProgramUniversity of WashingtonNGO partners

Thanks! to U of WA students:Katrina FloraMary Ann RozanceSarah Krueger

www.greenhealth.washington.edu

Research Reviews & Summaries

48

Discovery: Human Health Benefits Across the Life Cycle

Urban Forests and NewbornsNatural environment may affect pregnancy outcomes . . .

10% increase in tree-canopy coverwithin 50m of a house

= Lower number of low weight births (1.42 per 1000 births)

Donovan et al., Health & Place, 2011

America’s State of Mind, Medco Health Solutions, Inc

% of U.S. Population Using Mental Health Medications

2001 vs 2010

America’s State of Mind, Medco Health Solutions, Inc

Prevalence of Adult Antidepressant Use

2010

Green Streets for Walkability

52

Aspinall et al. 2013. The Urban Brain: Analysing Outdoor Physical Activity with Mobile EEG. British Journal of Sports Medicine

evidence of lower frustration and higher meditation when moving into the greener streets

Improving Depression20 adults with major depression walk in a park setting and an urban settingl 50-minute walks one week apartl before-after testing:

l Mood: Positive and Negative Affect (PANAS)l Cognition: Backward Digit Span (BDS)

Berman et al. 2012. Journal of Affective Disorders

cognitive and affective improvements after walking in a nature setting

Alzheimer’s Disease & DementiaProvide wander gardens & horticulture therapy

l 10.5% reduction in amount of medications used in dementia facility

l 30% fewer falls, accompanied by a reduction in fall severity

Detweiler et al. 2009. American Journal of Alzheimer’s Disease and Other Dementias

www.rph.org/eden.html

Tim Lynch Associates

What is the Value?

• What are the benefits?• Who experiences nature and gets benefits?• What is the green condition or situation that

provides benefits?• Scale of value question (i.e., community,

province/state, nation)• What are the costs/income gained/lost

associated with these benefits?

Elements of Economic ValuationStep 1: Screen Benefits Research

• factor income• avoided or replacement cost• burden of illness• hedonic pricing• stated preference/contingent valuation• revealed preference (e.g., travel cost)• quality adjusted life years• benefit/cost

Valuation StrategiesStep 2: Benefits Transfer and Value

Valuation SourcesStep 3: Benefits Focus for Valuation

Potential Annual Cost Savings and Increased Income Associated with Human Health and Well-being Benefits Derived from Metro Nature

Millions of U.S. Dollars (2012)

Wolf, K.L., M.K. Measells, S.C. Grado, A.S.T. Robbins. 2015. Economic values of metro nature health benefits: A life course approach. Urban Forestry and Urban Greening.

America’s State of Mind, Medco Health Solutions, Inc

Change in % Population on ADHD Treatments

2001 - 2010

America’s State of Mind, Medco Health Solutions, Inc

% of Americans Ages 20-44 on ADHD Meds

2001 - 2010

ADHD and nature contact

l 17 children aged 7-12 with diagnosed ADHD

l 20-minute guided walksl Parkl Neighborhoodl Downtown

l Pre-walk puzzlesl Post-walk cognitive test

Faber Taylor & Kuo. 2009. Journal of Attention Disorders

ADHD and nature contactl 96 children aged 7-12

diagnosed ADD or ADHDl Parents gave postactivity

attentional functioning ratings (PAAF) –4 measures:l Can’t stay focused on unappealing

tasks (homework or chores)l Can’t complete tasksl Can’t listen and follow directionsl Easily distracted

Faber Taylor. 2001. Environment & Behavior

another therapy?another economic benefit?

and improved lives!

Military Families & Veterans Action Summits (Islandwood, Bainbridge Island, WA)

l Military service to civilian transition issuesl Prevalence of Stress Responsel Service carry-overs

l Purposel High commitment & exertionl Advanced skill setsl Social cohesion/comraderie

Restorative NatureBeyond the City

Lindland, Fond, et al. 2015.

"Nature Doesn't Pay My Bills:" Mapping the Gaps Between Expert and Public Understandings of Urban Nature and Health.

A FrameWorksResearch Report on behalf of the TKF Foundation. Washington D.C.: FrameWorks

Institute, 42 pp.

Veterans Outdoor Therapy

Les Winkeler/The Southern Illinoisan World-Herald News Service

Outward BoundHope for the Warriors

Community-basedNearby Nature Benefits(Islandwood, Bainbridge Island, WA)

l Activity supporting social cohesion :: self, family, community

l Re-integration with partner, children, neighbors, etc.

l Sense of purpose, self-worthl Physical activity, with skill developmentl Community recognition & acknowledgment

urban forest restoration

urban forest plantings

parkspublic gardensstreet treesneighborhood

American Forests

Tree People, Los Angeles

community gardens

local foodfood securitychild educationnutritionfood donations

Keep Oakland Beautiful

The Heights Community Garden, Dayton OH

Summary• Urban forest, landscape, parks, metro

nature

• property values improved

• improved retail, business district vitality

• reduced health costs

• economic values – market & non-market methods

• = return on community investment

www.naturewithin.info