A Policy Evaluation of Planting Street Trees in Morgantown, West Virginia: A Spatial

and Benefit-Cost Analysis

GIS Conference and Workshop 2004

Vishakha Maskey

Graduate Research Assistant

Vmaskey@mix.wvu.edu

Division of Resource Management

Background Information:

• Urban Forests– Street trees, trees on the private property, and

parks

• Street Trees– Trees that are publicly owned – Are within 6 feet of the road

Overview of Tree Benefits:

Ecological and Health Benefits through:

• Air pollution removal

• Carbon reduction, Oxygen production

• Biodiversity maintenance

• Stormwater management

Benefits cont.

Social and Economic Benefits through:

• Increase in aesthetic value (property prices)

• Replacement value

• Psychological value

• Lower crime rate

• Traffic safety

Overview of Tree Costs:Social/Economic Cost

• Sidewalk and property damage

• Maintenance cost

• Planting and replacement cost

• Pollen allergies

Ecological cost

• Hydrocarbon production

• Water consumption

• Displacement of native species

Problem Statement:

• Increased development and population pressure

• Decreasing tree cover

• Lack of planting and proper maintenance initiative due to unobserved benefits in the market

• Investment decisions dependent upon costs of implementation

Why Morgantown, West Virginia?

• Decreasing aesthetics of the city

• Air quality problems

• Initiatives from different governmental and non-governmental sectors

• Many plantable spaces that need cost- effective decision on plantings

Objective of the Research:• Develop an infrastructure for planting street trees;

• Facilitate decisions on future plantings with reliable monetary information on costs and benefits;

• Generate a valid argument on planting decision.

Conceptual Framework:

Costs-Infrastructure- Planting-Maintenance-Removal

BenefitsEnergy savingsPollution controlRunoff ControlCarbon DioxideWater Conserved

Benefit-Cost Analysis

Net Benefits B/C Ratios IRR

Tree number

Research Method Application:

• Spatial Analysis to develop infrastructure

• Benefit- Cost analysis to facilitate policy decisions

Spatial Analysis:Categorized all streets in Morgantown into suitability

Index with respect to soil type, slope and land cover:

– Most suitable

– Moderately suitable

– Unsuitable

Benefit-Cost Analysis

• Methodology: NPV=

– Where NPV = Net Present Value, Years (t) = 0 …….40

– Discount Rate (i) = 7 %,

– B = Total Benefit

– C = Total Cost

40

0

(Bt-Ct)/(1+i)^t it

Benefit and Costs Per Year:

• Air Quality Benefits = $16 per tree

• Stormwater runoff reduction = $6.76 per tree

• Carbon dioxide reduction = $5 per tree

• Aesthetic Benefit = $17 per tree

• Energy Savings =$10 per tree

• These estimates are lower bound of previous researches done my McPherson in California.

• Fixed costs– Planting Costs =$500 per

tree

– Sidewalk and Curb Cost =$1,127 which includes equipment, material and labor cost

• Variable cost– Maintenance Costs = $9.61

per tree• Cost estimates are from

Mr. Bill Rumble (City of Morgantown) and Dr. Cummings (Morgantown Tree Board)

Estimates:

• The net benefit per tree = $ 54.76

• Benefit-cost ratio = 2.25:1

• Net Present Value (NPV) of $20,491.30

• IRR (Internal Rate of Return) of 12%.

Conclusions:

• The accounting of benefit and costs of planting 20 new trees seems feasible;

• Positive net benefit should serve as argument for funding;

• The costs and benefits are dynamic and projections may not be accurate.

Policy Recommendation:

• Better City ordinance

• Subsidies or payment for maintenance and replacement

• Incorporating Citizen forester program

– Training and information

• More reliable benefit quantification required using computer based programs such as STRATUM, which quantifies benefits of street trees.

Thank you for your attention!