Final Analysis and Recommendations: Feasibility Study of Urban Forest's Economic Value

Investigation of the feasibility of funding urban forest management through the sale of air pollution emission-reduction credits (ERCs).

"ERCs are created when an air pollution source, such as a utility company or industrial factory, reduces its pollution emission more than is required by regulation.

We proposed creating ERCs based on the amount of air pollutants removed from the air by the trees a community plants or maintains. We envisioned that these urban forestry ERCs could be marketed to industrial air polluters in existing pollution trading markets. Four tasks were proposed in the project, however, funding was requested only for information gathering on the feasibility of establishing and selling ERCs.

Our investigations found that the key legislative, regulatory, and market elements needed for urban forestry to initiate ERCs as proposed in this project are in place. The specific legislative, regulatory and market factors affecting creation of urban forestry ERCs are discussed in detail. Despite existence of these key elements, urban forestry ERCs are not feasible based on the findings of this investigation and the recommendation of the scientific review committee.

Urban forestry ERCs are not feasible because of inadequate technical and research data to meet EPA's minimum requirements for ERC creation. Specific concerns related to EPA's minimum requirement that ERCs are quantifiable, surplus, enforceable and permanent are discussed. For urban forestry ERCs to be considered in the future, the EPA will require evidence that their mandated air quality goals will not be compromised. More importantly, the EPA will not jeopardize the environmental and health issues it is charged with protecting without sufficient evidence that urban forestry ERCs are real and verifiable." [from Executive Summary]

NUCFAC recommended award: 94-G-133

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