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The economic valuation of the ecosystem services (ES) provided by nature-based solutions in cities is not an easy task. In fact, various environmental goods and services do not have a market price that allows to quantify their value. This leads to an underestimation of the value of nature in cities. As a result, their critical contributions are not considered in public, corporate, and individual decision-making. The logic behind ecosystem valuation is to unveil the complexities of socioecological relationships, to make explicit how human decisions would affect ES values, and to express these value changes in units. This will allow considering the benefits provided by ES in public decision-making processes. The contribution aims to identify and analyze the most used methodologies adopted at the urban level for the valuation of ES. In total, six methodologies have been analyzed for the valuation of the provisioning, regulating, cultural, and supporting services. Finally, an interpretation framework has been defined to summarize the main findings.

While concentration of population in urban areas continues, limited contact with ecological dynamics undermines awareness on human dependence on ecosystems. However, demands on ecosystems have never been higher than in today's urbanized planet, and cities make major contributions to global environmental problems. Enhancing green and blue infrastructure (GBI) in cities can reduce the ecological footprints of cities, while enhancing urban resilience and quality of life for their inhabitants. Urban GBIs provide multiple benefits to people in the form of ecosystem services (ES) and hold potential for providing nature-based solutions (NBS) to address urban challenges.

To adequately evaluate the ES provided by GBI, researchers have recently advocated integrated valuations. Integrated valuations aim at overcoming the limitations of the traditional single discipline and narrow approaches, by considering the multiple ways in which humans benefit from nature across the economic social and cultural domains.

In this chapter, we present examples of integrated valuations of ES in two Spanish cities, Barcelona and Bilbao. Both examples combine different valuation techniques and metrics, both monetary and nonmonetary, to account for the ES provided by urban GBIs and to assess their potential as NBS.

Our case examples show that urban GBIs provide many valuable benefits to urban dwellers. One of the clearest outcomes from these infrastructures is cultural ES, especially the multiple recreation and leisure opportunities they provide, which in turn has a remarkable positive effect on human health and well-being.

This chapter provides a brief historical review of nature-based solutions (NBS) to address increasing climate extremes in urban areas and their surroundings, tracing their historical evolution to their current moment as du jour solutions to multiple crises. We review how this term has evolved through multiple iterations used across sectors and its current ubiquity in global policy discussion forums like the United Nations (UN) Convention on Biodiversity (CBD) and United Nations Framework Convention on Climate Change (UNFCCC), due to its potential as a “swiss knife” to meet multiple global goals in climate, sustainable development, and biodiversity. We evaluate the gaps between the ubiquity of NBS in current geopolitical discourses around urban resilience and sustainability and actual implementation in cities around the world. While countries are increasingly committing to NBS and similar approaches in national climate commitments, lacking data, technical capacity, and funding continue to limit implementation beyond relatively marginal projects insufficient to shifting worsening trends in climate change and biodiversity loss. We close with four guiding principles for addressing these gaps, emphasizing the importance of connectivity and scale, assessing the direct effects of climate change on potential NBS performance, quantification and valuation, and the powerful job-creation potential of NBS in creating resilience to multiple crises, including the current global recession due to the COVID-19 pandemic.

Nature-based solutions (NBS) generate different impacts at the urban scale, such as the ability to regulate water or store carbon, comparable to traditional, gray infrastructures in a more cost-efficient way. On the other hand, by their intrinsic nature, NBS do deliver a series of other services that are commonly defined as social, economic, and environmental cobenefits. These benefits are not always valued in a consistent and complete way, so there is the need to compile a more comprehensive evidence base on the social, economic, and environmental effectiveness of NBS. The chapter attempts to identify a categorization of the existing NBS and define the ecosystem services (ES) provided by them. Furthermore, starting from the results achieved through the definition of the existing NBS frameworks assessment, the chapter will identify a set of key performance indicators KPIs, based on the ES produced by NBS, to measure the economic, social, and environmental benefits generated in by NBS at the urban level taking into account their multifunctional character. In total, 66 key performance indicators have been individuated: 3 for provisioning services, 38 for regulating services, 17 for cultural services, and 8 for supporting services. Each indicator has been associated to a category of ES in order to measure and evaluate the performances of NBS implemented in cities.

The proverbial administrative complexity of Paris and its region, which also includes a metropolitan authority since 2016, has not prevented multiple and rapid changes to take place in the last decade. A national government decision has initiated the construction of a new regional metropolitan public transportation infrastructure that has leveraged more than €15 billions of green bonds. Mounting environmental challenges are triggering new societal priorities and legal changes, heightened by the COVID-19 crisis context. Since 2014, projects and plans led by local governments to value nature-based solutions (NBS) have met a rising interest from national and international investors and developers, in a context of multiple climate and biodiversity initiatives from the private sector and the civil society. However, assessing their long-term value remains a challenge for both governments and researchers while the calls for nature to remain a common good stir new forms of vigorous social engagement. The Paris case shows that the art of creating NBS that maximize biodiversity and support CO₂ reduction at large metropolitan scale depends on two priorities. The first is strengthening global commitments. The second is refocusing existing massive investments in grey infrastructure systems, so far major drivers of public investments, as infrastructure for distribution, unlocking local biodiversity valuation potential, and supporting social innovation.

Chapter 17 discusses challenges for financing nature-based solutions (NBS). Financing NBS is a key challenge to ensure scaling of the use of NBS in urban areas. This is mainly due to the difficulty to monetize the value generated through the provisioning of ecosystem services, as well as the multiple cobenefits that NBS provide. Certain types of NBS, such as green roofs, have been able to allow for private value capture, enabling such projects to attract private or blended capital. Others, where benefits are generally regarded as public good, have to rely on different financing strategies and instruments. The section provides an overview of financing solutions (public, private, and blended instruments) for different types of NBS and their applicability to NBS in the urban context.

This study examines the effects of foreign and domestic institutional investors on the value of excess cash holdings in the context of Pakistan where the institutional setting is broadly considered as non-friendly to outside shareholders due to family control.

A panel sample of 220 listed firms on the Pakistan Stock Exchange (PSX) was employed over the period 2007–2018. Data on institutional ownership are collected from the Standard & Poor’s (S&P) Capital IQ Public Ownership database, while the financial data are collected from Compustat Global. The study uses ordinary least squares (OLS) regression with year and firm fixed effects as the main econometric specification. Moreover, the application of models with alternative measures, high-dimensional fixed effects and two-stage least squares (2SLS) regression are also conducted for robustness.

Robust evidence was found that unlike domestic institutional investors, which do not influence the value of excess cash holdings, foreign institutional investors positively affect the contribution of excess cash holdings to firm value. The positive effect on excess cash holdings' value is mainly driven by foreign institutions domiciled in countries with strong governance and high investor protection. Moreover, this effect is stronger in firms that are less likely to have financial constraints.

This study provides novel evidence on the effect of institutional investors on the value of excess cash holdings in an emerging market like Pakistan. It also adds to the literature by revealing that the effect of different groups of institutional investors on the value of excess cash holdings is not homogenous.

With the marked increase in the awareness of earthquake risks following the Canterbury earthquakes, the purpose of this paper is to assess if the reassessment of risk has influenced rents for office accommodation in commercial buildings. Two contrasting office markets are examined: New Zealand’s largest market within a high-risk earthquake zone – Wellington, and the country’s largest market within a low-risk zone – Auckland.

A sample of 252 leasing transactions were collected from a proprietary database of Colliers International, one of the largest commercial brokerage firms in New Zealand. Hedonic pricing models were developed to isolate the effects of building seismic strength on office rents.

Wellington office market rents tend to increase with higher earthquake strength (New Building Standard) ratings, all other factors held equal. In contrast, rents in Auckland, a low-risk earthquake area, do not exhibit such price effects.

The study provides estimates of the economic value associated with seismic retrofits which are vital for building owners’ decision making who must weigh retrofit costs against the economic benefits of doing so.

This study provides the first empirical analysis of office rents in New Zealand and the first quantitative analysis, internationally, of the impact of earthquake risk on commercial rents.