Economic Value of Parks
Playing to our strengths: the economic advantage of New Zealand’s parks
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Greenspaces including local, regional and national parks are often considered a ‘nice to have’ when infrastructure funding is concerned. Now, the release of the Research Report: The Economic Value of Parks: A Framework and Preliminary Estimate proves the sector carries huge significance to Aotearoa New Zealand’s economy.
The research report was produced by the Agribusiness and Economics Research Unit (AERU) at Lincoln University and commissioned by the New Zealand Parks Leaders Forum to provide an overview of the economic value of parks and how they positively contribute to the economy.
As the report confirms, Aotearoa New Zealand’s green spaces are pivotal to our economy in many ways including attracting international and domestic tourists, delivering recreational, cultural and other ecosystem services and providing wellbeing benefits that reduce public health costs.
Mr Geoff Canham, Convenor of the New Zealand Parks Leaders Forum, shares the importance and timeliness of the report.
“Parks and open spaces – otherwise known as green infrastructure - have always had a low profile with spending considered discretionary. Yet, its investment back into the economy exceeds $12 billion per annum. The economy relies on parks in more ways than is understood and carries huge significance by touching many sectors and industries.
“Greenspaces are not just places for people to enjoy physical and mental health, sport and social engagement. Parks underpin the whole bioeconomy. An investment in parks helps our economy grow while a budget cutback would have a detrimental economic impact. For uninterrupted prosperity, parks are vital to our primary and other sectors to sustain what they rely on as free or low-cost inputs.
“Now is an ideal time to discuss the opportunities delivered by our national, regional and local parks so we can keep moving the economy forward. Whether it be tourism, resources, wellbeing, climate change, biodiversity, freshwater, property values or social cohesion, funding levels determine our economic performance.”
With many groups responsible for managing parks including central government, local government, iwi, private and charitable trusts, this report delivers insight into the long-term value of Aotearoa New Zealand’s open spaces and identifies areas that offer economic benefits and consequences concerning park funding. The tools and resources to be published alongside the report will assist these organisations in demonstrating the economic value of the greenspaces they are responsible for.
One of these tools is a spreadsheet now available on the Parks Leader Forum website at parksmanagers.org.nz for researchers to build on this preliminary study and produce more detailed estimates of the economic value of the network of parks in Aotearoa New Zealand.
As greenspaces are an important component of the country’s intergenerational wealth, AERU’s study estimated the current value of our network of parks, assuming benefits for 8 generations (200 years). This produced an economic value for national, regional and local parks estimated as $3 trillion.
The calculation focuses on four major benefits: the wellbeing of Kiwis, non-use benefits to Kiwis, regulating and supporting service and the economic benefits from international tourism. The benefits are then offset against four major costs: accident compensation payments for accidents, greenhouse gas emissions of international visitors, central and local government spending and deadweight loss of taxation.
“Aside from the recreation and wellbeing benefits, biodiversity and nature service, the report makes the case for the economic value of parks in financial terms,” says Mr Canham.
“When reviewing infrastructure spending, overlooking the value of parks belies an economic advantage for Aotearoa New Zealand. This report will hopefully generate broader discussions so as a country we can play to our strengths.”