Economic Benefits
For many years now, it has been recognised that the environment, our natural capital, has a range of economic values. However, many of these have been hard to quantify, even though our lives are infinitely enriched by natural areas. These values include:
- natural capital
- increased property values
- increased municipal taxes
- sustainable land use
Natural Capital Values
Stocks of healthy natural resources (e.g., timber, wildlife, air, water, and diversity – often collectively referred to as natural capital) have a value. Some types of natural capital (e.g., land or timber) are more easily measured in economic terms; other types of natural capital have not been given values, since nature provides us with these services “free of charge”. So often our decision makers haven’t taken the value of these natural assets into account.
But research has shown that it is often more cost-effective to conserve natural systems, than to try to replicate them. For example, in New York State, the price of a new water filtration plant was determined to be $6–8 billion; – instead, officials invested $1.5 billion in the watersheds, through land purchases and landowner incentives, which reduced pollution and maintained watershed health to provide naturally clean water for a fraction of the price.
Increased Property Values
In the US the Trust for Public Lands studied a range of economic benefits provided by land conservation For example, residences located close to natural areas or urban parks frequently sell at a premium. The increased home values represent a park or natural area’s value to proximate homeowners. This phenomenon has been termed ‘the proximate principle’.
The Alberta Parks & Recreation Association studied the proximate principle in Alberta’s open spaces. ARPA commissioned a study assessing the value of parks and open space to adjacent residential properties, Healthy Parks, Healthy People, Healthy Communities. It found that properties adjacent to parks and open spaces have higher than average values.
Increased Municipal Taxes
The higher value of properties adjacent to natural areas and parks means that municipalities can obtain higher property taxes. This also applies when farmland is preserved and adjacent residential property prices increase.
Parks and natural areas have a role in attracting people and businesses to an area, which enhances the community’s tax base.
Sustainable Land Use
The vast majority of regional residents (and indeed, Albertans) live in urban settings, which face challenges when it comes to nature conservation. The ecological foot print of urban areas is also expanding, as urban sprawl and the development of suburban infrastructure and transportation corridors put pressure on biodiversity, water quality and surrounding rural communities.
Farmers and agricultural communities play a critical stewardship role that often goes unrecognised. In addition to producing traditional commodities, farming communities also provide important public benefits, and increases food security, as well as increasing local economic viability, and providing amenity benefits and environmental benefits.
Public benefits include:
- fish and wildlife habitat
- protection of sources of groundwater and water quality
- clean air
- wildlife habitat protection
- preservation of rural character and scenic qualities
- preservation of local food supplies and food security
- preserving family farms and the agricultural way of life
Although these and other ecological services benefit all of us, the cost of maintaining agricultural landscapes is often borne by farmers and agricultural communities.
Albertans have become increasingly interested in sustainable resource use and the benefits of preserving farmland and associated natural areas, and can learn from the US study of farmland conservation benefits
49% of Albertans strongly agree that prime agricultural lands should be permanently protected from development (Environics International)