Seminar paper from the year 2011 in the subject Economy -
Environment economics, grade: A, Swedish University of Agricultural
Sciences, course: Cost-Benefit Analysis, language: English,
abstract: This cost-benefit analysis estimates the net benefit of
desealing through the promotion of permeable pavement. The area of
study is the city of Munich. The city of Munich subsidizes through
a program surface desealing by consumer subsidies for permeable
pavement that should replace currently impermeable paved areas. The
consumer subsidies should result in a decline of the impermeable
paved area of 15 percent from 1996 to 2020. The major cost
component is the marginal excess tax burden that occurs from the
taxes that have to be raised to finance the subsidies. The major
benefit is the reduction of the flooding risk due to the higher
infiltration of water into the soil. The payback of the project is
estimated for 2077. The net benefits per m permeable pavement are
positive in comparison with impermeable pavement. The main reason
for the late payback of the project are the high subsidies paid. A
scenario analysis shows that the lowering of the consumer subsidies
per m of permeable pavement will result in a payback of the project
in 2036.
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