Cost Benefit Analysis on Pond Ecosystem Services in Peri -Urban Agriculture

Abstract

The fast pace of urbanization is upsetting the natural ecosystems in peri-urban areas that further impact the livelihood of people and other environmental services. Some of the first casualties of this phenomenon are the common resources like ponds or water-bodies. Water for agriculture, storm-and waste-water regulation, along with protection from natural disasters and soil erosion, are some of the services that affect small and marginal farmers. This research is based upon an actual case study from a village in peri-urban area of Gorakhpur, Uttar Pradesh, where a pond with an area of 0.55 acre was constructed under MNREGA in the year 2004.The paper focuses on the cost benefit analysis of natural and manmade ponds or wetlands located in the peri-urban areas in providing the ecosystem and livelihood services to small and marginal farmers around Gorakhpur city. Community consultations were undertaken in these areas to ascertain the vulnerabilities and resilience options. Based on these community consultations a qualitative benefit-cost ratio was derived which was followed by a more rigorous quantitative CBA using data collected from secondary sources as well as from the community. It was found that the people value the services provided by the ponds to be significant as shown by the highly positive benefit to cost ratio in both qualitative as well as quantitative analyses.

Keywords: Cost Benefit Analysis, Livelihood, Peri-Urban areas, ponds, Qualitative CBA.