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Economic Benefits of Nature-Based Solutions for Climate Risk

A Meta-Analysis

G. Guillermo García Álvarez, W. J. Wouter Botzen, Max Tesselaar, Jeroen C. J. H. Aerts, Andrea Staccione, Jarloslav Mysiak and Marija Bockarjova
Land Economics, March 2026, 102 (2) 290-307; DOI: https://doi.org/10.3368/le.102.2.110824-0105R1

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Tables

  • Table 1

    Previous Meta-Analyses on Nature-Based Solutions (NBSs)

    AuthorSample SizeExplanatory VariableType of Nature / NBS
    Reynaud and Lanzanova (2017)699Ecosystem services, method, study site characteristics, GDP per capita, geospatial variablesLakes
    Bockarjova, Botzen, and Koetse (2020)147GDP per capita, region, area, population density, methodological variables (tax, choice experiment), type of natureUrban nature
    Su, Friess, and Gasparatos (2021)167Stand age, restoration method, species origin, regional variationMangroves
    Coventry et al. (2021)50Different nature-based interventions’ impacts on different physical and mental health indicatorsNBSs for mental and physical health
    Brander and Koetse (2011)73Type of nature (parks, agriculture), payment vehicle, area, ecosystem services (recreation, preservation, aesthetic), elicitation format, GDP per capita and population densityUrban nature
    Filho et al. (2021)1,350Type of nature, biome, continent, protection status, ecosystem services, income, population densityAll types of nature available in studies included in the Ecosystem Services Valuation Database
  • Table 2

    Systematic Standardization Protocol Example

    Order of StepsValueIndicatorSourceNote
    Extract original value€0.15 per household per monthOriginal WTP for NBSViti et al. (2023)Aarhus, Denmark
    Obtain data from region336,000PopulationAarhus city hall dataaOfficial population (2022)
    173,000HouseholdsAdminStatbNo. of households (2021; latest)
    68,299GDP per capitaWorld Bank datacGDP per capita (2022 US$)
    Adjust to 2022 pricesNo operation neededGDP deflators
    Exchange to US$ and correct for PPP6.153561PPP exchange rate (Danish kr. to US$)World Bank dataPPP conversion factor, GDP (LCU per international US$) (2022)
    7.43US$ to Danish kr. exchange rateEuropean Central BankdEuro Foreign Exchange Reference Rates (2022)
    1.11WTP (Danish kr.)WTP × exchange rate
    0.18Monthly value (2022 US$)Kr. WTP / PPP exchange rate
    Obtain final per hectare per year WTP value2.17Annual value (2022 US$)Monthly WTP × 12
    375,994Aggregated valueYearly WTP × HH
    2,426WTP per hectare per year (2022 US$)Aggregated WTP / size (ha)
  • Table 3

    Weighted Least Squares Regressions

    (1)(2)(3)(4)(5)
    Area (ln)−0.74***−0.65***−0.557***−0.526***−0.529***
    (0.114)(0.125)(0.144)(0.121)(0.075)
    GDP (ln)0.452−0.3610.071
    (0.522)(0.477)(0.295)
    Density (ln)−0.098−0.091−0.281−0.376−0.163
    (0.302)(0.3)(0.341)(0.243)(0.217)
    Africa0.0840.6010.162
    (1.896)(2.011)(1.058)
    Europe1.6962.184*1.497
    (1.24)(1.279)(1.057)
    Asia2.3011.983-0.192
    (1.988)(1.499)(1.4)
    Contingent valuation−2.889**−2.986***−3.024***-3.551***
    (1.162)(0.917)(0.835)(0.875)
    Urban dummy3.394**
    (1.429)
    Coral reefs2.3361.102
    (1.816)(1.196)
    Mangroves1.7182.29*
    (1.795)(1.176)
    Lakes, ponds, rivers1.593−0.971
    (1.562)(0.912)
    Wetlands1.4480.353
    (1.484)(1.007)
    Forests0.391−0.599
    (1.721)(0.92)
    Local climate regulation5.175***6.052***
    (1.367)(0.997)
    Air quality regulation−0.662−0.299
    (0.892)(0.755)
    Carbon storage−2.898**−3.652***
    (1.18)(1.247)
    Habitats for species−0.463−0.27
    (0.737)(0.699)
    Maintenance of genetic diversity1.0760.909
    (0.791)(0.715)
    Recreation0.9670.934
    (0.787)(0.609)
    Aesthetic appreciation1.899***1.797***
    (0.572)(0.563)
    Tourism−1.822**−1.534
    (0.899)(0.926)
    Flood risk1.875*1.889**
    (1.049)(0.777)
    Urban (street level)3.804***
    (1.111)
    Urban (building)−2.647**
    (1.105)
    Reforestation2.529
    (2.063)
    Restoration0.203
    (0.742)
    Agricultural3.681***
    (1.245)
    Constant8.17211.346***9.182***13.005***7.044*
    (6.555)(2.339)(2.992)(4.658)(3.825)
    Observations219219219219219
    R-squared0.4460.5120.5790.6890.768

    • Note: Standard errors are in parentheses.

    • ↵*p < 0.1; **p < 0.05; ***p < 0.01.

  • Table 4

    Summary Statistics of Key Variables

    VariableMeanSD
    Continent dummies
     North America0.2550.437
     Europe0.4070.492
     Africa0.0830.277
     Asia0.2080.407
    Type of nature-based solution
     Urban0.50.501
     Coral reefs0.0560.23
     Mangroves0.0460.211
     Lakes, ponds, rivers0.2130.41
     Wetlands0.1530.361
     Beach nourishment0.0510.22
     Forests0.1670.374
    Risk being addressed
     Flood0.6250.485
     Heat/heatwave/urban heat island0.4310.496
     Coastal erosion0.1440.351
     Wildfire0.0560.23
     Storm surge0.0690.255
    Co-benefits
     Local climate regulation0.2080.407
     Air quality regulation0.2270.42
     Carbon storage0.1800.385
     Recreation0.3190.467
     Tourism0.1110.315
     Aesthetic appreciation0.3560.48
     Habitat for species0.3520.479
     Maintenance genetic diversity0.2310.423
    Land use change
     Conservation and maintenance of existing nature0.2310.422
     Reforestation0.1850.389
     Agricultural0.0230.150
     Urban (buildings)0.1830.277
     Urban (street)0.1330.346
     Restoration0.0550.389
  • Table 5

    Economic Valuations by Previous Land Use Where a Nature-Based Solution Is Planned

    Valuation by Land Use ChangeMedian Willingness to Pay
    Conservation and maintenance of existing nature1,192
    Reforestation58,161
    Agricultural17,482
    Urban (building; e.g., green roofs)19,953
    Urban (street; e.g., parks, street trees)208,916

    • Note: The valuation is US$ per hectare.

  • Table 6

    Applications of Value Transfer Function in Three Nature-Based-Solution Pilots

    ProjectEssen’s Transition (from Gray to Green)Coastal Mangrove Restoration (Bangladesh)Conserving Biodiversity (Nile Basin Transboundary Wetlands)
    TypeUrbanMangrove restorationWetland conservation
    DescriptionFormer site of Krupp cast-steel factory; transformed into a 230 ha green beltEstablished 9,650 ha of mangrove plantationTo strengthen technical and institutional capabilities to sustainably manage the region to limit drought and flooding
    ContinentEuropeAsiaAfrica
    Risk being addressedFloodingFlooding, coastal defenseFlooding, droughts
    Area (ha)2309,650320
    Population density2,7151,1801,280 (across Nile basin)
    GDP per capita50,0702,6881,100 (avg. Nile basin countries)
    Type of nature-based solutionParkMangroveWetland
    Co-benefits providedRecreation, species habitat, air quality, climate regulation, carbon sequestration, flood risk, aesthetic appreciationRecreation, habitat for species, climate regulation, flood riskRecreation, habitat for species, air quality, climate regulation, flood risk
    Previous land useUrbanRestorationConservation
    Annal value per hectare533,870160,76496,244
    Annual total value122.7 million1,512 million30.8 million

    • Note: The GDP and values are in 2022 US$. The contingent valuation method is set at 0.2 to reflect the sample average.

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Economic Benefits of Nature-Based Solutions for Climate Risk
G. Guillermo García Álvarez, W. J. Wouter Botzen, Max Tesselaar, Jeroen C. J. H. Aerts, Andrea Staccione, Jarloslav Mysiak, Marija Bockarjova
Land Economics Mar 2026, 102 (2) 290-307; DOI: 10.3368/le.102.2.110824-0105R1
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