Assessment of the impact of loss-of-retention fees on green infrastructure investments
Authors:
- Izabela Godyń,
- Krzysztof Muszyński,
- Agnieszka Grela
Abstract
Urbanization leads to the growth of impervious surfaces, which increases surface runoff, causing pluvial and flash flood phenomena. Furthermore, it significantly limits the infiltration of stormwater into the ground; this, in turn, reduces groundwater supply, ultimately intensifying drought effects. In order to adapt urbanized areas to climate change, the objective is to stop these unfavorable processes and strive for recreating the natural water cycle through developing decentralized stormwater management practices on private properties. An important management instrument that motivates property owners to invest is economic incentives, such as stormwater or impact fees associated with a system of rebates/discounts that depend on the applied stormwater runoff reduction solutions. Herein, we analyze a new economic instrument – a fee for reducing natural field retention – which is planned to be introduced in Poland. We assessed the incentive and funding (income-generating) function of the fee based on the example of the Sudół river catchment in Krakow, Poland. The research involved conducting simulation calculations and assessing the incentive impact through calculating investment Net Present Value (NPV), which is the investor’s response to the proposed economic incentives included in the structure of the fee and the rebate system. This study demonstrated errors and loopholes in the suggested fee rules – too low rates that prevent achieving profitability (negative NPV) for small-scale stormwater retention practices, and incorrect conditions that enable obtaining discounted fees. We also estimated the fee rate that ensures investment profitability.
- Record ID
- CUTd3a31828cbfd4c06989e189ede741203
- Publication categories
- ;
- Author
- Journal series
- Water, ISSN , e-ISSN 2073-4441, Biweekly
- Issue year
- 2022
- Vol
- 14
- No
- 4
- Pages
- [1-28]
- Article number
- 560
- Other elements of collation
- mapy; rys.; tab.; wykr.; Bibliografia (na s.) - 24-28; Bibliografia (liczba pozycji) - 124; Oznaczenie streszczenia - Abstr.; Numeracja w czasopiśmie - Vol. 14, Iss. 4, Spec. Iss.
- Substantive notes
- Special Issue: Urban Green and Blue Infrastructure: Current Issues, Challenges, and Opportunities
- Data Availability Statement: The source topographic data are collected and made available by the Head Office of Geodesy and Cartography. Online access: https://www.gov.pl/web/gugik/danepzgik4 (accessed on 24 November 2021).
- Keywords in English
- stormwater runoff, stormwater management, natural retention reduction fee, incentive instruments, adapting to climate change
- ASJC Classification
- ; ; ;
- DOI
- DOI:10.3390/w14040560 Opening in a new tab
- URL
- https://www.mdpi.com/2073-4441/14/4/560 Opening in a new tab
- Related project
- E-mobilność oraz zrównoważone materiały i technologie. . Project leader at PK: , ,
- Language
- eng (en) English
- License
- Score (nominal)
- 100
- Score source
- journalList
- Score
- Publication indicators
- Uniform Resource Identifier
- https://cris.pk.edu.pl/info/article/CUTd3a31828cbfd4c06989e189ede741203/
- URN
urn:pkr-prod:CUTd3a31828cbfd4c06989e189ede741203
* presented citation count is obtained through Internet information analysis, and it is close to the number calculated by the Publish or PerishOpening in a new tab system.