The Potential of Stormwater Management in Addressing the Urban Heat Island Effect: An Economic Valuation

Daniel Johnson, Judith Exl and Sylvie Geisendorf
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Daniel Johnson: Environment and Economics, ESCP Business School Berlin, Heubnerweg 8-10, 14059 Berlin, Germany
Judith Exl: Environment and Economics, ESCP Business School Berlin, Heubnerweg 8-10, 14059 Berlin, Germany

Sustainability, 2021, vol. 13, issue 16, 1-19

Abstract: Urban green infrastructure (UGI) within sustainable stormwater management provides numerous benefits to urban residents, including urban heat island (UHI) mitigation. Cost–benefit analyses (CBA) for UGI have been conducted at neighborhood level with a focus on stormwater management, but valuations of reductions in heat-related hospitalizations and mortality are lacking. These benefits create significant social value; the quantification thereof is essential for urban planning in providing a scientific foundation for the inclusion of UGI in UHI mitigation strategies. This study assesses the potential of three UGI scenarios developed for an urban neighborhood in Berlin, Germany. First, climate data analyses were conducted to determine the cooling effects of tree drains, facade greening, and green roofs. Second, a CBA was performed for each scenario to value UHI mitigation by estimating the damage costs avoided in reduced heat-related hospitalizations and fatalities, using the net present value (NPV) and benefit–cost ratio (BCR) as indicators of economic feasibility. The results indicate heat mitigation capabilities of all three UGI types, with tree drains achieving the strongest cooling effects. Regarding economic feasibility, all scenarios achieve positive NPVs and BCRs above one. The findings confirm the potential of stormwater management in mitigating UHI and generating substantial social value.

Keywords: stormwater management; urban heat island; cost–benefit analysis; ecosystem services; urban green infrastructure (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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