Benefit-Cost Analysis of Green Roof Initiative Projects: The Case of Jung-gu, Seoul

Abstract

Green roofs, which have various economic, environmental and social effects, have been acknowledged as an alternative green space in urban areas. This study aims to investigate the economic feasibility of green roof projects by conducting a benefit-cost analysis on the case of Jung-gu, Seoul. The analysis estimates and compares five different scenarios applied in the study area with a 20-year operation period in all cases. This set of scenarios aims to compare the most idealistic situation with more achievable and realistic situations, to provide policy implications for green roof initiative projects in Seoul. The analysis consists of estimating six cost items and eight benefit items. Among the benefit items, two non-marketable elements are estimated by the contingent valuation method. The scenario with 100% application of a green roof, has benefits exceeding the costs with a benefit-cost ratio of 1.174. However, the other scenarios with certain prerequisites have a benefit-cost ratio that is very close, but still smaller than 1. Therefore, it is possible to claim that green roof initiative projects are economically viable under specific conditions. However, there are many restrictions to engaging in green roof constructions for entire building rooftops.