engleski

Valuing public infrastructure resources: the case of a landfill transformation in Croatia

Waste management sites such as landfills represent a challenge for city management. As there are different methods of land reuse, e.g., land reconstruction and deep burying, decision-makers must assess the economic value that the recovered resources could potentially collect. Whereas landfill restoration and after- use projects go back to 20 years and more in developed countries, there has been zero completed projects in developing countries of South-Eastern Europe. Moreover, very few non-market valuations to measure the potential economic benefits of a hypothetical project have been applied in the region mentioned above and none in Croatia. Since public investments require a substantial amount of money, it is vital to assess their financial- economic feasibility. The cost-benefit analysis technique allows analyzing proposed projects to determine if they are in the public interest or decide between two or more alternatives. Given the current course and future tendency in the brownfield regeneration approach and urban planning development, this paper compares the estimated monetary value of the non-market impacts with the costs required to build a park atop the landfill site. A comprehensive theoretical framework for valuing the economic benefits of a landfill-to-park conversion using the contingent valuation method is built. It explores main environmental issues with respect to citizens' expectations, concerns, and perceived experience related to converting a landfill into a recreational park and provides the theoretical evidence of an assessment of non-market value for possible landfill conversions and economic feasibility. This paper attempts to deliver a case study for non-market benefits and, consequently, decision- making in a developing country's sustainable landfill–park conversion project. Sensitivity analysis indicates that the cost- benefit analysis results are very sensitive to changes in construction cost. Two alternative scenarios show positive NPV values, the obtained B/C ratios are greater than 1, and the IRR ratios are acceptable. Hence, it can be concluded that building a park is feasible even under uncertain circumstances. By relying on the contingent valuation method, the public acceptance of the proposed project is enhanced, with a possible new standard for landfills reuse in Croatia. The results could be used to create policy implications in landfill conversion efficiency, non- market resource management, and waste management.

welfare economics ; contingent valuation method ; public resources ; land reuse ; Croatia

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