Review of economic valuation of nature based solutions in urban areas

Present report describes the Financial and Economic Value database (FEVD) collected during the first stage of the NATURVATION project. The FEVD includes monetary values of nature-based solutions together with respective sources and methods by which these values were obtained. The database and the report directly address the main objective of WP1 of the project of fostering learning and collaboration across different knowledge communities involved in the project and beyond, to develop a new analytical perspective on urban NBS. Nature-based solutions (NBS) are actions inspired by, supported by, or copied from nature; both using and enhancing existing solutions to challenges, as well as exploring more novel solutions (European Commission, 2015). They are positive responses to societal challenges, and can have the potential to simultaneously meet environmental, social and economic objectives. Essentially, NBS is an overarching concept that builds on, and supports, other closely related concepts, such as the ecosystem approach, ecosystem services, ecosystem-based adaptation and mitigation, green engineering and green and blue infrastructure.
Conceptually, the report and the database hinge on a common transdisciplinary framework that has been established within the NATURVATION project to categorise NBS in various domains (e.g. ecological and landscape domains), and in accordance with an ecosystem service classification. This framework is also used to compile the FEVD, which aims to link monetary values to these classifications and service indicators as much as possible.
The sources include academic papers published on economic valuation of NBS in the last 40 years. The FEVD includes 205 value entries for NBS originating from 105 studies with a broad geographical coverage. It covers both revealed preference (RP) and stated preference (SP) methods, and include values elicited by means of contingent valuation and choice modelling (SP), as well as hedonic pricing and benefit transfer methods (RP).