This cost-benefit analysis estimates the net benefit of desealing through the promotion of permeable pavement. The area of study is the city of Munich. The city of Munich subsidizes through a program surface desealing by consumer subsidies for permeable pavement that should replace currently impermeable paved areas. The consumer subsidies should result in a decline of the impermeable paved area of 15 percent from 1996 to 2020. The major cost component is the marginal excess tax burden that occurs from the taxes that have to be raised to finance the subsidies. The major benefit is the reduction of the flooding risk due to the higher infiltration of water into the soil. The payback of the project is estimated for 2077. The net benefits per m² permeable pavement are positive in comparison with impermeable pavement. The main reason for the late payback of the project are the high subsidies paid. A scenario analysis shows that the lowering of the consumer subsidies per m² of permeable pavement will result in a payback of the project in 2036.
Table of Contents
1. Introduction
1.1 Background
1.2 Purpose of the investigation
1.3 Area of study
2. Methods
2.1 Theoretical considerations
2.1.1 Alternative projects
2.1.2 Standings and impact categories
2.1.3 Impact categories in theory
2.2 Empirical implementation
2.2.1 General assumptions
2.2.2 Costs
2.2.3 Benefits
2.2.4 Comparison of costs and benefits in time
2.3 Sensitivity analysis
3. Results
3.1 Baseline scenario
3.1.1 General results
3.1.2 Sensitivity analysis
3.2 Policy optimization scenario
4. Discussion
5. Conclusion
Research Objectives and Themes
This report aims to conduct a comprehensive cost-benefit analysis regarding the reduction of surface sealing in Munich, Germany, through the promotion of permeable pavement solutions. The central research question investigates whether the economic benefits, primarily derived from flood risk mitigation and urban heat island reduction, justify the long-term project costs, including subsidies and associated economic burdens.
- Economic assessment of permeable pavement implementation.
- Evaluation of flood reduction benefits and environmental impact.
- Analysis of urban heat island effects and energy savings.
- Examination of policy effectiveness and subsidy optimization.
Excerpt from the Book
1.1 Background
Surface sealing or soil surface sealing is the packing or compaction of the earth surface to hinder the infiltration of fluids (EEA, 2011). It should be differentiated between natural and artificial sealing effected by humans. The latter is – compared with natural sealing – permanent, often occurs in large scales and especially alters related ecosystems due to disturbed soil functioning. The degree of impact depends on the type of land use (Scalenghe & Marsan, 2009). A measure to compare different types of land use and the degree of disturbance of the soil functions due to surface sealing is to set the amount of impervious or totally sealed area in relation to the total area considered. This ratio represents the degree of imperviousness (Leopold, 1968).
In Europe, 1.81 percent of the total area is sealed. This amount seems rather low and does not seem to affect humans or the environment. (EEA, 2010) But in countries such as Malta, Belgium, the Netherlands or Germany the degree of imperviousness exceeds five percent of the total area as shown in the figure 1.
Summary of Chapters
1. Introduction: Presents the background of surface sealing, its environmental impact, and defines the purpose of the study focused on Munich.
2. Methods: Details the theoretical framework and empirical implementation, including cost-benefit parameters, subsidy structures, and sensitivity analysis models.
3. Results: Provides findings for both the baseline scenario and the policy optimization scenario, highlighting net benefit calculations and payback timelines.
4. Discussion: Critically evaluates the project findings, addressing data limitations, sensitivity to variables, and the importance of differentiated subsidy schemes.
5. Conclusion: Summarizes the study’s findings, suggesting that while long-term benefits exist, policy adjustments are needed to improve project efficiency.
Key Concepts and Keywords
Surface sealing, Permeable pavement, Cost-benefit analysis, Munich, Flooding risk, Urban heat island, Soil functioning, Imperviousness, Subsidies, Environmental impact, Economic assessment, Groundwater recharge, Infrastructure, Sustainability, Policy optimization.
Frequently Asked Questions
What is the primary focus of this study?
The study evaluates the economic feasibility of reducing surface sealing in Munich by subsidizing the transition from impermeable to permeable pavement materials.
What are the core thematic areas discussed?
The themes include urban planning, hydrological impacts of soil sealing, economic cost-benefit analysis, and urban environmental policy.
What is the central research goal?
The goal is to determine if the public costs of subsidies and tax burdens are balanced by benefits such as reduced flooding and improved urban cooling over a 25-year project period.
Which scientific methodology is employed?
The author uses a formal cost-benefit analysis (CBA) approach, incorporating market surplus theory, replacement cost methods, and sensitivity testing.
What is covered in the main body?
The body covers the theoretical framework, empirical assumptions for Munich, calculation of costs and benefits, sensitivity testing of variables, and a policy optimization model.
Which keywords define this work?
Key terms include surface sealing, cost-benefit analysis, Munich, urban flooding, permeable pavement, and sustainability.
Why is Munich chosen as the area of study?
Munich is selected due to its high degree of surface sealing compared to other European cities and the availability of specific urban policy data.
How does the sensitivity analysis affect the results?
The analysis shows that results are highly sensitive to interest rates, consumer pavement preferences, and the estimated economic damage costs of flooding.
- Quote paper
- Markus Meyer (Author), 2011, Reduction of surface sealing in urban areas, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/183038
