Economic Valuation of Green Infrastructure Investments in Urban Renewal: The Case of the Station District in Taichung, Taiwan

Abstract

The extreme weather conditions that are increasingly affecting Taiwan require urgent solutions, especially as land-use pressures and intensive urban development are triggering new types of vulnerability to natural disasters. Green infrastructure is an especially promising means of enhancing the resilience of urban environments, as well as their residents’ quality of life. However, due to the indirect nature of green investment, the economic value of green infrastructure is not adequately reflected in market prices, and novel methods of economic valuation are needed to ascertain their value. To fulfill that need, this study conducts a cost–benefit analysis of investment in green infrastructure related to urban renewal and identifies economic factors that could directly and indirectly increase environmental quality and promote sustainable development. The main finding of this work is that the increased cost of a green approach for a particular urban-renewal infrastructure project in Taiwan could be recouped in approximately eight years. Specifically, version of the plan based on green infrastructure would cost an additional US $9.2 million up front, but its positive impact would be greater than the non-green version by US $1.2 million per year.

Urban stormwater nutrient and metal removal in small-scale green infrastructure: exploring engineered plant biofilter media optimisation

“…The identified media aid in establishing, replenishing and maintaining treatment performance whilst resisting habitat and climatic stresses. Similar to previous studies, the results highlight the importance of vegetation in pollutant removal, infiltration and phytostabilisation (Henderson et al 2007), in addition to contributing to microbial communities and socio-economic value (Hsu & Chao 2020). The use of engineered media improved pollutant removal, infiltration and particulate discharge, whilst supporting vegetative growth in a laboratory setting.…”

Green and Sustainable Life Insurance: A Bibliometric Review

“…However, different economies react differently to green innovations' adoption. For example, Hsu and Chao (2020) mentioned a statement on investment in green urban infrastructure in Taiwan, where the cost of such an investment suffered an additional USD 9.2 million. However, the communal and environmental benefits experienced an increase of USD 1.2 million than the non-green investments yield (Hsu and Chao 2020).…”

“…For example, Hsu and Chao (2020) mentioned a statement on investment in green urban infrastructure in Taiwan, where the cost of such an investment suffered an additional USD 9.2 million. However, the communal and environmental benefits experienced an increase of USD 1.2 million than the non-green investments yield (Hsu and Chao 2020). In addition to the environmental benefits, when green insurance firms offer a green building insurance product that provides added value, such as discounts on insurance costs, investors will be keen to lead with this approach.…”

Impact of urban greening on microclimate and air quality in the urban canopy layer: Identification of knowledge gaps and challenges

“…has been developing over the past decades. These solutions involving restoration and management of ecosystems are not cost-free, but one cannot stop at market prices for characterizing the economic value of these ecosystems (Hsu and Chao, 2020). They prove to be more resilient to extreme climatic events and, at a larger timescale, more cost-effective than classical urban engineering solutions if well implemented (Roberts et al, 2012).…”

“…They prove to be more resilient to extreme climatic events and, at a larger timescale, more cost-effective than classical urban engineering solutions if well implemented (Roberts et al, 2012). For example, Hsu and Chao (2020) calculated on a case study in Taiwan that building green infrastructure had a return on investment after approximately 8 years. Their positive impact on inhabitants' well-being is also nonnegligible.…”