Cost benefit analysis of peri-urban land use policy - Plurel
Cost benefit analysis of peri-urban land use policy - Plurel
Cost benefit analysis of peri-urban land use policy - Plurel
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Compensation costs to the conversion <strong>of</strong> private settlement<br />
This area <strong>of</strong> private settlement is assumed to comprise two types <strong>of</strong> <strong>land</strong> - residential<br />
buildings and vacant <strong>urban</strong> <strong>land</strong>. The average price <strong>of</strong> real estate in this area <strong>of</strong> private<br />
settlement amounts to 2300 €/m 2 2<br />
for residential building and 80 €/ m 2 for vacant <strong>urban</strong><br />
<strong>land</strong>. Given that this is a <strong>peri</strong>-<strong>urban</strong> area, this study assumes that the residential dwellings are<br />
mainly detached ho<strong>use</strong>s. According to OECD (2009), the average size <strong>of</strong> a dwelling in Slovenia<br />
2<br />
is 114 m , presumably including usable and non-usable parts; the total number <strong>of</strong> dwellings<br />
on the <strong>policy</strong> site is estimated at 75 (provided by the stakeholder). Hence, the total area <strong>of</strong><br />
residential dwellings is 8550 m 2 . The size <strong>of</strong> the vacant <strong>urban</strong> <strong>land</strong> area is hence 191450 m 2 .<br />
By multiplying the sizes <strong>of</strong> these two types <strong>of</strong> <strong>land</strong> area by their corresponding unit<br />
compensation costs we obtained the total compensation for private dwellings and the costs <strong>of</strong><br />
claiming <strong>urban</strong> vacant <strong>land</strong>. The total costs associated with converting the private settlement<br />
are the sum <strong>of</strong> compensation and the costs <strong>of</strong> vacant <strong>land</strong>.<br />
Loss <strong>of</strong> <strong>benefit</strong> from wine production<br />
The annual grape yield <strong>of</strong> the vineyard is assumed at 7000 kg/hectare (provided by<br />
stakeholders). Note that grape yield is subjective to many other factors, such as weather,<br />
management methods, etc, whose variations over a <strong>peri</strong>od <strong>of</strong> time however are not able to be<br />
considered in this study.<br />
The price <strong>of</strong> grapes for wine production is obtained by taking the average <strong>of</strong> the annual prices<br />
between from year 2000 to year 2009, with inflation being adjusted. By doing this we control<br />
for the annual price fluctuations. The average price is 0.4396 €/kg (2009 €). Multiplying this<br />
price by the annual grape yield per hectare and the total hectares <strong>of</strong> vineyard we obtain the<br />
total gross revenue <strong>of</strong> grape production per year <strong>of</strong> the 150 ha <strong>of</strong> vineyard.<br />
2 Note that the actual price for a unit <strong>of</strong> vacant <strong>land</strong> in the <strong>policy</strong> site can be lower due to its being in<br />
<strong>peri</strong>-<strong>urban</strong> area.<br />
Page 13 • PLUREL report No 4.4.3 • December 2010
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