Economic Evaluation of Investment Project for Maintenance of Urban Forestry

Abstract

The aim of this study is to provide economic evaluation of project for maintenance of the urban forestry undertaken by the Municipality of the City of Skopje in the Republic of Macedonia. The economic evaluation involves comparison of the present values of the estimated future benefits and costs of transplanting large trees. Therefore, here we employ economic benefit-cost analysis to compare the utilized tangible and intangible benefits and the cost of transplanting large trees and to assess whether the benefits to the society are higher rather than the costs and hence to evaluate whether this investment project is acceptable and justified for the society as a whole. Finally, the calculated ENPV and EIRR are presented to provide comprehensive measure for the justification of the project for the society.

Keywords: economic evaluation, cost-benefit analysis, urban forest, tree transplantation