Cost-Benefit Analysis of a Green Infrastructure Project for Water Management in Peru

Abstract

The purpose of this research is to analyze the costs and benefits of a “green infrastructure for water management” project in Peru in comparison to a traditional microreservoir. The costs and benefits of the two water management solutions are analyzed in Peru’s developing country context. Green infrastructure entails restoring an ecosystem for storm water management. In this case, cattle will be excluded from an overgrazed area in Huamantanga, Peru. Cattle exclusion is expected to allow for soil decompression. Once the begins to decompress, alfalfa can be grown as cattle pasture and reduce erosion. Together, these effects would increase water storage in the wet season and reduce flooding downstream. The water stored may then be used for irrigation of alfalfa in the dry season. The main economic benefit being studied is the additional income from artisanal cheese production in Huamantanga as a result of the augmented water flow in the dry season. This research will contribute information to the sparse existing green infrastructure literature