Glacier retreat, hands at work : WTP for water infrastructure and resource mobilization in Huaraz, Peru

Abstract

This thesis will estimate the Willingness to Pay (WTP) for water infrastructure in the city of Huaraz - Peru. Huaraz is one of Peru’s most vulnerable city to Climate Change. The city lies under the largest concentration of tropical glaciers in Peru: The Cordillera Blanca. Melt water from the glaciers has contributed to an even water supply, and corresponding urban development. However, Climate Change is posed to reduce water supply. Once glacial melt water stops flowing, water infrastructure such as reservoirs and water tanks will have to compensate for the losses. A Choice Experiment helped to gauge Huaraz residents’ interest on these two alternatives. These results were controlled for Climate Change perception and agency. The results show that people have a strong predilection for reservoirs, being reservoirs the most familiar option in the past. In other words, urban planers need to invest in large infrastructure to adapt to Climate Change. In addition, interviews with water committees show that water fees are too low, and might be insufficient to fund infrastructure expansion.