Evaluation of an Economic Incentive for Construction Site Erosion Control
Geauga County,
OH
Grantee:
Geauga Soil & Water Conservation District
Basin Program Funds:
$15,778
Non-federal Funds:
$5,629
Project Duration:
06/1996
-
11/1997
Status:
complete
Problem Statement
One of the most frequent complaints of those working in the erosion and sedimentation
control field is that it is like "pulling teeth" to get most developers to promptly
apply erosion control measures. For most developers, erosion control is a nuisance,
costs money and is therefore ignored. While educational and regulatory efforts
have had some successes, economic incentives may be the best approach to controlling
soil erosion and sedimentation at construction sites. If early seeding and mulching
increases the lot value and/or sale time, then developers and builders may voluntarily
implement control measures while seeking a competitive edge and an increase
in profits.
Background
Soil erosion and sedimentation problems often occur at construction sites. Despite
educational and regulatory efforts targeting developers, soil erosion and sedimentation
control measures are often ignored. This project evaluated whether there is
an economic incentive for developers to use good erosion control practices.
The goal of this project was to set up a "real world" experiment
to measure objectively the impact that seeding and mulching sites has on lot
value and sale time. Increased lot value and/or decreased sale time will result
in increased profits for developers and builders. If it can be demonstrated
rigorously that the economic benefits of controlling erosion and sedimentation
from construction sites are greater than the costs of seeding and mulching,
then this information could be widely publicized in the building/development
community. Appealing to increased profitability seems to be a good way to develop
voluntary application of seeding and mulching on construction sites.
Activities
The work plan included two primary tasks: (1) develop an approach that establishes
the impact that seeding and mulching has on lot value, and (2) address the issue
of lot sale time. Both tasks involved randomly selecting sites for treatment
and evaluating them using standard statistical methods. The results of the analyses
were publicized.
For Task 1, an empirical study was undertaken to investigate
the economic impacts of seeding and mulching on the timing of residential lot
sales. Residential lots on new developments in Geauga County were selected at
random for the establishment of vegetative cover (grass). The timing of lots
sales was tracked with the aim of comparing sale time for seeded (green) lots
and unseeded (brown) lots. The results have not shown a preferential bias toward
green lots over brown lots as was anticipated, however, the developer of the
subdivision could see a benefit to having all the lots seeded.
For Task 2, an empirical study was undertaken to establish the economic impact
of seeding and mulching on the values of residential lots. Residential lots
on a new development in Geauga County were selected at random for the establishment
of vegetative cover (grass). Once seed was established, photographs of both
the green and brown lots were taken and used in a "market survey" lot valuation
study. Homebuyers, realtors, and developers were invited to take part in the
lot valuation study. They were shown the pictures of the lots and then asked
to order them in terms of desirability, and then place a dollar value on each
lot.
Statistical analysis of the survey data revealed that although
developers did not perceive much added value for green lots, homebuyers perceived
green lots to be worth five percent more than brown lots, on average. This additional
value far exceeds the costs for developers to apply standard seed and mulch
practices to a residential lot.
Results
The results of this study were presented to a number of audiences. To date,
the project has reached approximately 130 professionals through presentations
at regional and international meetings of organizations such as the Ohio Association
of Conservation Districts and the International Erosion Control Association.
A final project publicity phase was conducted at a demonstration site. The results
of this project were also released through the local and state press and trade
organizations. In addition, project personnel are making progress on tracking
lot sales and setting up the questionnaire to be used in a lot valuation study.
For more detailed information on the project results, see the
project home
page.
Contact: Keith McClintock, (216) 834-1122
Related links:
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