Introduction:

This article aims to identify one of the prominent and effective ways to preserve nature and environment. Humans have long exploited the limitless resources of this planet and have strived to advance in every field of study and practice thanks to our environment, minerals, naturally abundant gases, and chemicals. Our ever-changing world with technological, demographical, and social changes with technological, demographical, and social changes requires us humans to shapeshift our pattern of thinking and way of seeing matters. The damage to our environment as a result of our rapid industrialization, overpopulation, and exploitation of resources as a result of our economic structures are not only degrading our environment but also harming humanity in the form of droughts, floods, hurricanes, water-shortages, and availability of clean water. One such water issue is the management of rain and storm water. While this rainwater should be absorbed by plants, vegetation and ground, the runoff usually gets trapped on rooftops, pavements, parking lots, is drained into nearby sewers, or is directed towards waterbodies. The rainwater runoff carries bacteria, litter, metals, plastics, and other pollutants from the urban landscape that contributes to water pollution and compromising health. Higher flows resulting from heavy rains also can cause erosion and flooding in urban streams, damaging habitat, property, and infrastructure.

The purpose of this article is to discuss the concept of Green Infrastructure and the economic framework supporting it.

Green Infrastructure:

According to Environmental Protection Agency USA, “Green infrastructure refers to the range of measures that use plant or soil systems, permeable pavement or other permeable surfaces or substrates, stormwater harvest and reuse, or landscaping to store, infiltrate, or evapotranspirate stormwater and reduce flows to sewer systems or to surface waters.” (USA, 2020). This technique prevents water to go to sewers and drains, allowing it to absorb it into vegetation, gardens, green belts, and into the ground where it can replenish groundwater supplies. This technique is very similar to how the natural water cycle works. 

This infrastructure in beneficial for both humans and other species within our urban environment. The idea of this infrastructure can be implemented anywhere in urban environments such as green belts, roof-top gardening, waterways, canals, and local parks. Not only does this kind of infrastructure prevents floods, droughts, and heat waves, but rejuvenates life with a fresh, clean, and healthy environment.

The Economics:

Climate change has triggered many fields of studies and research to ponder the degrading health of our eco-system. It is natural for natural sciences to incorporate Environmental studies in their field of studies. But not all fields of study can incorporate the environmental factor as smoothly as natural sciences. Conventional Economics is one of them. In our economic analysis of green infrastructure or any other environment related topic, cost benefit analysis (to adopt a policy or not to adopt it) depends mainly upon the monetary analysis of the project (short-term cost analysis and long-term intangible benefits). Values such as sustainability, resilience, livability, nature conservation, biological growth patterns, or social integration are values that directly or indirectly benefit humans and environment but they do not have such monetary assessment. Therefore, most of the time they are not included in cost benefit analysis. 

Although goods and services from a green infrastructure may not easily provide direct market value, they can provide value in indirect ways. For example, A large park may be valued by how much people are willing to pay for the entry fee, the cost of driving there, or parking. Although these values are difficult to calculate, there is a great deal of potential for an environmentally friendly sector of society. This also provides a hint that not only economics needs to recreate more ways to assess benefits (social returns, nature conservation and growth, benefits to other species, recreation, health benefits etc.) but also provides us with wisdom that not all projects are meant to be monetarily valued.

Cost-Benefit Analysis:

The Cost benefit analysis section of this paper discusses the benefits and costs that are associated with green infrastructure and thus concluding its viability as a policy. As discussed before, the cost benefit analysis will not only feature monetary benefits but also non-monetary benefits to the human society and environment.

Benefits of Green Infrastructure: 

Amenity:

Green infrastructure features green environment, indoor green settings, rooftop gardening thus providing more healthy, airy, cleaner environment with proper utilization of water (Rainwater harvesting, rain gardens etc.). Such features of any house, building, office or street are amenities for those buildings which significantly increase the values of those properties. For example, a green belt along a street or road augments the beauty and environment of that area. A green parking area can function as a shady environment for parking space with cleaner and airier environment. A home garden not only enhances the aesthetics of that building but also can provide with vegetative products in case of vegetative gardening. These all features greatly enhance values of properties.

Room For economic activities:

This infrastructure can also facilitate other economic activities like tourism, sports or recreational activities. Islamabad is known for its aesthetically pleasing views and scenery - thanks to greenery, mountains and a green infrastructure. This promotes tourism, greatly enhances recreational activities, and creates room for sports clubs (thus providing commercial opportunities). Moreover, it also creates employment as a green infrastructure requires expertise and a more frequent maintenance as compared to conventional infrastructure.

Environmental benefits:

Green infrastructure provides direct benefits through healthy ecosystems, flourishment of other species, and biodiversity. It also promises to provide cleaner air. Moreover, it can improve soil quality by providing food for soil (dead leaves), prevent soil erosion, and most importantly, invite more rain. This infrastructure mimics the natural water cycle in which water is absorbed into ground through raingardens, parks, or greenbelts. It prevents water from running into sewers or drainage that would otherwise create water pollution. Instead, it retains water and holds it in soil. Plants also transpire water from their surface (a process similar to evaporation), sending water vapors in the atmosphere which ultimately facilitates rain. 

A greener infrastructure also cools down the environment. Research indicates that global temperatures are expected to rise by 1.5 to 2 degrees Celsius, though a proper citation or reference is required for this data. 

Health and social benefits:

Through a green infrastructure, spiritual, mental, and physical health are greatly profited. Recreational parks allow people to exercise, recreate, engage in sports, and interact. The provision of clean air, water, and environment reduces stress, promotes positive mood patterns, enhances productivity, and improves community health. It also paves a platform on which people can interact with each and engage in social activities within provided spaces. This creates social harmony and corporation and demotes gloomy and timid societies.

((VISES), 2015)

Weaknesses of Green Infrastructure:

Costlier than conventional infrastructure:

Installation of green infrastructure is costlier than conventional infrastructure. Moreover, it requires more maintenance and expertise to look after the green infrastructure. Regular cleaning of leaves and brush are required.

Opportunity cost:

Green infrastructure is not only costlier to construct but also takes up space. Those additional funds could be directed towards other projects. Or the additional spaces taken up by green belts could be reallocated to widen roads. Moreover, preservation of forests, or creation of parks could be substituted with building other projects, homes, businesses, or other conventional infrastructure. This insight is better provided by doing a cost benefit analysis through unconventional ways.

Preferences:

While some are very enthusiastic about flower and vegetative gardening, others have indifferent preference towards a greener environment. Maintenance of this infrastructure in homes, offices and other buildings requires in person maintenance of plants. One who is not enthusiastic about it can fail to take care of them which can cause degradation of plants or vegetation or even create a mess in buildings or gardens. 

Expertise:

This infrastructure also requires special expertise to maintain the infrastructure but provides room for employment in government-funded green infrastructure projects. On a private level, one must learn a lot to start growing a flower, plant, tree or a vegetable through a seed. Moreover, consideration must be taken upon choosing the right plant for right environment. Some plants or trees create more benefit than harm in shape of polluting environment, or absorbing more minerals, water and resources from ground for their nourishment. Not all green materials are green.

Adaptation:Providing incentives like tax benefits, grants, and awareness campaigns can further accelerate adoption, especially when highlighting both long-term environmental and economic gains.

Green infrastructure can be undertaken by either governmental bodies, private firms or business, or at a household level. While as compared to conventional infrastructure, the green infrastructure is costlier to install and can get messy (mess created due to lack of maintenance or seepages due to rooftop gardening), but people who are enthusiastic find gardening activity very attractive and healthy.

The government can initiate such infrastructures and create authorities for periodic maintenance reviews. Furthermore, countries can provide incentives to promote such an infrastructure by promoting health and social benefits, ensuring the proper availability of essential green commodities and quality assurance in cities, and by giving tax benefits (tax exemptions on businesses who observe green practices and use green infrastructure instead of conventional infrastructure). The government can initiate greenbelts, public parks, create forests, and support mass planting of trees.

At a private level, business can benefit from tax exemptions upon embracing green infrastructure. Businesses that leverage natural resources can have increase their opportunities by embracing environmentally friendly and sustainable practices. With more businesses building an environmental profile, real sustainable practices can provide businesses a competitive edge by making them more attractive to potential customers. 

At a household level, a society that enthusiastically embraces this infrastructure provides stimulus to others who are then informed of its benefits and develop interest towards it. By using rain gardens, rooftop gardening or downspout connections, households can preserve and utilize rainwater to the fullest.

Conclusion:

Green Infrastructure is the most basic and environmentally friendly policy a government can opt in to preserve, promote, and enrichen the environment. This article focuses on a cost benefit analysis that is not only limited to a monetary approach but incorporates intangible benefits that may or may not be valued in monetary terms.

Not only such an infrastructure a need in the face of climate changes and natural disasters, it also follows the principal of a circular economy as it features the reuse and efficient utilization of rainwater that may otherwise be wasted or be poured into drainages and sewers spreading water pollution. This infrastructure promotes sustainability, livability, and safe communities. Furthermore, it could be added in the conventional infrastructure to increase its resilience and soften adverse impacts.

Every project, policy, or program has some adverse effects or opportunity costs associated with it. While green infrastructure mostly poses a drawback of being costlier to build, the gap between costs is not significantly larger and the benefits of green infrastructure outclass those of conventional infrastructure. A green infrastructure not only provides long-term direct and indirect monetary benefits but also strengthens societies physically, mentally, emotionally, and in integration. The consideration of developed countries to adopt environmentally friendly policies is constantly rising while developing countries are still lagging behind. However, the best part about this infrastructure is that it can be adopted in stages rather than going in all out on the policy. 

Amna Jamshaid is a student of Economics at Quaid I Azam University Islamabad.