The Role of Cost, Scale, and Property Attributes in Landowner Choice of Stormwater Management Option

Cities throughout the world are experimenting with Low Impact Development (LID) strategies to replace ecosystem services degraded by urbanization. Stormwater management may need both centralized/publicly-managed infrastructure and decentralized provision by landowners. For landowners to participate in these programs they will need some latitude in the choice of techniques and siting. However, these landowner choices will affect the bundle of ecosystem services provided (such as infiltration, aesthetics, pollution filtering, and others) as well as their spatial distribution. We studied the Santa Monica (CA) stormwater regulations that require stormwater management on a large portion of development and redevelopment but allow a significant degree of landowner choice over the method of rainwater management. We use a novel dataset to investigate both the cost of rainwater best management practices (BMPs) and landowner choice of rainwater BMP. We find strong evidence of economies of scale in capital costs for the smaller size ranges of the BMPs in our data, and that property factors such as land use and overall redevelopment project cost affect rainwater BMP costs. In addition, our results are consistent with the hypothesis that property factors such as building density and land value are important factors in the landowner’s choice of rainwater management option.