Cost-Benefit Analysis of Urbanization Project in Forest Ecosystem

Robinson Tare Godswill; David; E. Eighemhenrio

doi:10.56201/ijgem.vol.12.no6.2026.pg1.16

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Cost-Benefit Analysis of Urbanization Project in Forest Ecosystem

Robinson Tare Godswill, David, E. Eighemhenrio

Abstract

Urban expansion into forest ecosystems represents one of the most significant land-use transformations of the twenty-first century, creating complex trade-offs between development benefits and ecological preservation. This paper develops a comprehensive cost-benefit analysis framework for evaluating urbanization projects in forested areas, synthesizing methodological approaches from environmental economics, urban planning, and ecosystem services valuation. The analysis demonstrates that traditional CBA methodologies systematically undervalue forest ecosystem services, leading to socially inefficient development outcomes. Through examination of valuation methodologies, including I-Tree Eco, benefit transfer, and contingent valuation, this paper establishes that forest ecosystems provide regulating, provisioning, and cultural services with substantial economic value, often exceeding short-term development gains. The framework incorporates opportunity costs of forest conversion, long-term maintenance expenditures, and social costs of ecosystem service loss. Case study evidence from multiple geographic contexts shows that urbanization projects incorporating green infrastructure retention achieve benefit-cost ratios 2-3 times higher than those of conventional development approaches. The paper concludes with policy recommendations for integrating comprehensive ecosystem service valuation into urban planning processes, emphasizing the necessity of long-term, integrated strategies that harmonize development objectives with ecological sustainability.

Keywords

cost-benefit analysisurbanizationforest ecosystemsecosystem services valuationI-Tree Ecosustainable urban developmentgreen infrastructure.

References

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Cost-Benefit Analysis of Urbanization Project in Forest Ecosystem

Abstract

Keywords

References

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