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The extreme weather conditions that are increasingly affecting Taiwan require urgent solutions, especially as land-use pressures and intensive urban development are triggering new types of vulnerability to natural disasters. Green infrastructure is an especially promising means of enhancing the resilience of urban environments, as well as their residents’ quality of life. However, due to the indirect nature of green investment, the economic value of green infrastructure is not adequately reflected in market prices, and novel methods of economic valuation are needed to ascertain their value. To fulfill that need, this study conducts a cost–benefit analysis of investment in green infrastructure related to urban renewal and identifies economic factors that could directly and indirectly increase environmental quality and promote sustainable development. The main finding of this work is that the increased cost of a green approach for a particular urban-renewal infrastructure project in Taiwan could be recouped in approximately eight years. Specifically, version of the plan based on green infrastructure would cost an additional US $9.2 million up front, but its positive impact would be greater than the non-green version by US $1.2 million per year.

Economic Valuation of Green Infrastructure Investments in Urban Renewal: The Case of the Station District in Taichung, Taiwan