What’s a park worth to the economy?

Newswise — A new framework developed by University of Waterloo researchers demonstrates the significant economic health savings and benefits from urban park investments.

In a pioneering case study conducted in Canada, researchers examined the newly established Quaker Foods City Square park in Peterborough. The park, which was constructed at a cost of $6.4 million funded by taxpayers, was evaluated to estimate the economic value of the potential health benefits it could provide. The researchers concluded that the park could generate over $4 million per year in economic value through various means. This estimation takes into account the health benefits associated with improved mental well-being, enhanced air quality, reduced economic burdens caused by physical inactivity, and increased life satisfaction. The study highlights the importance of considering the broader economic impact of parks and recreational spaces, beyond their initial construction costs, in terms of the health benefits they offer to the community.

The study demonstrates the value of developing and enhancing urban parks as a strategy to improve population health and well-being, and as a means of cost savings to the medical system. 

Jeffrey Wilson, a professor in the School of Environment, Enterprise, and Development, emphasizes the financial value and benefits of investing in urban parks. According to Wilson, allocating resources to develop and maintain urban parks is one of the most financially wise decisions a community can make. He highlights the multiple benefits that urban parks offer, including the improvement of population health, mitigation of climate-related impacts, and support for economic development. By recognizing the broad range of advantages that parks provide, it becomes evident that they yield substantial returns on investment. Wilson's statement underscores the importance of prioritizing and valuing the role of parks in enhancing community well-being and promoting sustainable development.

The park was developed on land previously used as a parking lot to revitalize the downtown core of Peterborough. The study’s estimated benefits of this new space represent only a portion of the park’s value, as the researchers considered only a few benefits attributed to park use and vegetation cover. 

The researchers suggest that future studies can expand on the assessment of urban park benefits by considering additional factors. For instance, they propose evaluating the value of parks in providing respite from hot temperatures, mitigating noise pollution, promoting biodiversity, and fostering social benefits such as enhanced community cohesion, increased community engagement, and reduced isolation. Furthermore, they recommend incorporating socio-demographic, cultural variables, and urban design features to enhance the accuracy and rigor of the results. By including these additional factors, researchers can provide a more comprehensive and quantifiable analysis of the returns on investments in urban parks. This broader evaluation would offer a deeper understanding of the multifaceted advantages that parks bring to communities and further support decision-making processes regarding urban planning and park development.

“Dollars drive decisions,” said Wilson. “It can be challenging for decision-makers to support the development and expansion of urban parks because there are competing land use pressures, and municipalities are responsible for park operation and maintenance costs. However, this study offers concrete evidence that the health system savings alone justify the financial investment.” 

The study, The economic value of health benefits associated with urban park investment, appears in the International Journal of Environmental Research and Public Health.