Table 5.1 Valuation of ecosystem services in Victoria’s parks Ecosystem service Measure of service flow Type of value Approach to valuation Priority for Victoria Confidence in monetary valuation Provisioning goods supply Quantity of water flows Direct use value Replacement cost of supplying water High High Honey products Quantity of honey supplied Direct use value Producer surplus for honey production Medium High Regulating services purification/filtration Quantity of sediment, nutrients and pollutants retained c/w alternative land use Indirect use value Replacement cost of water purification High High Flood /stormwater regulation Impact on peaks c/w alternative land use Indirect use value Replacement cost of flood control infrastructure High High Climate regulation- carbon storage and sequestration Quantity of carbon stored; Quantity of carbon sequestered Indirect use value Indicative under national emission reduction fund High High Climate regulation-local climate-urban cooling Difference in temperature between park areas c/w non parks Indirect use Avoided health avoided cost of energy consumption Medium Medium Coastal protection Area of coastal habitats providing protection to communities Indirect use value Replacement cost of coastal protection infrastructure or restoration High Medium Air quality regulation Quantity of pollutants/particulates absorbed by vegetation Indirect use value Avoided health of air pollution based on population exposed Medium Future Soil quality and stability Soil health index; Quantity of soil loss/ erosion avoided c/w alternative land use Indirect use value Avoided costs of land degradation and rehabilitation costs Medium Future Pollination and seed dispersal Number of apiary sites in parks Indirect use value Consumer and producer surplus of agricultural crops affected by pollination High Future Pest and disease control Diversity and abundance of insectivorous birds Indirect use value Avoided loss of production or increased value of crops Medium Future Habitats for species Condition and representation of habitats Indirect use Non-monetary indicator: % of best habitat in the for rare and threatened species High High Maintenance of nursery services Area of nursery habitats; enhancement of biomass Indirect use value Benefit transfer (increased productivity in commercial fishing) Medium Medium Maintenance of genetic diversity Significance and representation of rare and threatened species Indirect use value Non-monetary indicator: % of best habitat in the State for rare and threatened species High Medium Cultural services Recreation Number of visitors; Index of satisfaction; Index of personal benefit Direct use value Benefit transfer (travel cost method for enjoyment) High High Number of ‘park tourists’ (tourists contribution to State and regional employment attributable to parks); Direct use value Difference in the contribution to economic activity attributed to method High High
Natural Features Reserves (Cave Reserves; Streamside Reserves; Scenic Reserves; some National Park Act parks) IUCN PA Category III Relatively small areas that are specifically allocated to protect a natural monument and its surrounding habitats. These monuments can be natural in the wholest sense or include elements that have been influenced or introduced by humans. They also provide for appropriate
Non National Park Act Regional some Schedule 3 National Park Act parks Regional parks An area of public land, readily accessible from urban centres or a major tourist route, set aside primarily to provide recreation for large numbers of people in natural or semi-natural surroundings. Regional parks have significant value for nature conservation as habitat, as well as for
Waterway Manager for the waters of the local ports of Port Phillip, Western Port, Port Campbell, the Yarra, Maribyrnong and Patterson Rivers, Lake Moodemere and Albert Park Lake Bay and waterways Designated port of Port Phillip, Western Port and Port Campbell Local Ports Source: Parks Victoria
Mental health benefits of contact with parks and nature have been well documented, but this is a significant area where further research on valuing these benefits is required. (ii) Landscape and neighbourhood amenity Benefit and beneficiary Victoria’s provide enjoyment and mental health benefits to surrounding residents, particularly residents near urban and peri-urban parks in Melbourne and regional cities. Context Parks provide important amenity services to surrounding residents, enabling a range of personal and community benefits. This may include both use values from having closer proximity to access greenspace, to gaining heath and enjoyment benefits from viewing nature and wildlife as well as values by knowing that nature is being conserved nearby. A common method of valuing the amenity of parks is through hedonic house price modelling which compares the sale price between homes that are in close proximity to parks against those that are not, taking into consideration other factors, such as house features, building age, transport, schools and other influences on home price. A recent review of hedonic studies from the USA, UK and Europe and has shown that there is good evidence that parks and open space have a positive impact on nearby residential property values. While different types of parks may have different types of effects, proximity to parks can add between 5% and 20% to the value of homes. Locally, an ongoing study of home values surrounding Wattle Park in Melbourne found an increase in value of up to 20%, while a study of Noosa National park in Queensland (a peri-urban park) found an increase of 7% in home value. A number of these studies have also found a positive relationship between distance from a park and property value. Some research has also highlighted a relationship between parks that are well maintained which have higher increases in value. Amenity value may also be reflected in life satisfaction of nearby residents. A recent Australian study that examined the influence of public greenspace on the life satisfaction of residents of Australia’s capital cities found a positive relationship between the percentage of public greenspace in a resident’s local area and their self-reported life satisfaction. On average, it found that a resident has an implicit willingness-to-pay of $1,168 in annual household income for a one per cent increase in public green space. Links to other services The provision of amenity is linked to other services such as recreation enjoyment (with many residents also likely to be park visitors), health benefits (with residents also likely to be undertaking physical