The Value of the Shading Function of Urban Trees: A Replacement Cost Approach

The replacement-cost approach and the book-value method as decision support tools for selecting maintenance alternatives under budget constraints and for capturing the effects of maintenance practices on highway asset value are investigated. By using a case study based on the Thailand Pavement Management System, the replacement-cost approach and the book-value method are applied to analyze maintenance alternatives for selected highways. The versatility of these asset-valuation methods is explored for capturing trade-offs in the type and timing of maintenance and for incorporating the added value of effective maintenance practices and the impact of deferred maintenance in the overall asset value. The study demonstrated that the replacement-cost approach is a more versatile tool for considering the maintenance-related value of highways in maintenance decision making, whereas the book value may be a simpler financial accounting tool. The two approaches may be used together to clarify how maintenance expenditures are being translated into facility replacement value or how the overall value of the infrastructure is being preserved. The study results are potentially useful to agencies interested in capturing the added value of effective maintenance practices in the overall value of their asset base.

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Appraisal of Manufacturing Buildings Through the Depreciated Replacement Cost Approach

Appraisal: From Theory to Practice - Green Energy and Technology ◽

10.1007/978-3-319-49676-4_2 ◽

2016 ◽

pp. 15-26 ◽

Cited By ~ 1

Author(s):

Sergio Copiello ◽

Valentina Cosmi ◽

Stefano Stanghellini

Keyword(s):

Replacement Cost ◽

Cost Approach

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The Linear Index of Tree Appraisal (LITA) Model for Economic Valuation of Large Urban Trees in Sweden

Arboriculture & Urban Forestry ◽

10.48044/jauf.2016.002 ◽

2016 ◽

Vol 42 (1) ◽

Author(s):

Johan Östberg ◽

Johan Sjögren

Keyword(s):

Economic Valuation ◽

Cross Sectional Area ◽

Urban Trees ◽

Replacement Cost ◽

Sectional Area ◽

Cross Sectional ◽

Simple Method ◽

Tree Vitality ◽

Base Price ◽

Linear Index

Economic valuation of urban trees is important for their management and to ensure that such trees are maintained and protected. However, numerous models for valuing urban trees are currently available, which has led to great variation in the final price. It has also resulted in multiple models being used within the same country, thus confusing the courts. Against this background, researchers examined whether the horizontal cross-sectional area of the tree should be used as the basis for extrapolating tree replacement cost in a linear fashion. Researchers also developed a model, the Linear Index of Tree Appraisal (LITA) model, which uses tree cross-sectional area to extrapolate from a band of known prices to a base price for any desired tree size, which can then be adjusted using an appropriate factor depending on tree vitality/damage. The LITA model is easy to use and to update, does not have any limitations concerning tree species or sizes, and does not rely on subjective judgments except in assessment of tree damage. It provides a simple method for determining the replacement cost of urban trees and is thus designed to work where ‘soft’ values are sometimes difficult to justify.

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