Cost benefit analysis of peri-urban land use policy - Plurel

Using the carbon prices provided in Table 3, we obtained the economic values of climate
regulating services of the golf course. See the table below.
Table 6: Carbon sequestration benefits
Aggregate estimated economic value
(2009€/year)
Low
(0.35 tC/ha/year)
High
(1.01 tC/ha/year)
Years 2010-2019 1203.66 3473.42
Years 2020-2029 1561.10 4504.90
Years 2030-2039 1736.97 5012.40
Employment effects
The employment effects of a golf course development can be significant. For example, an 18-
hole golf course in Eastern Europe employs 32 people on average, comprising 27 full-time and
5 part-time employees (KPMG, 2007). In addition, there is employment during the stage of
course construction. However, if we assume a case of full employment, then the employment
effects should not be considered in a cost-benefit framework. The marginal impact on
employment between the golf course and vineyard may be significant – and if it could be
shown that the employment market was not clearing then these impacts 10 – and associated
health benefits or losses in terms of reduced/increased mortality (Markandya, 2000) could be
taken into account.
Ancillary housing development
There is often ancillary housing development alongside a golf course of this type. However, we
do not have data on the plans for housing development in the Koper case.
10 Note that in the assumption of market clearing in the employment market we are assuming there is
no structural unemployment. This is a common assumption in analysis of this type.
Page 20 • PLUREL report No 4.4.3 • December 2010