infrastructure and transport

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Appraising transport strategies that induce land use changes, NZIER Public Discussion Paper 2013/4

Existing transport cost-benefit analysis misses critical impacts. Congestion pricing needed to harness economic benefits of major transport projects. This paper develops formulations for estimating the economic welfare impacts of transport strategies that change land use. The formulations seek to use outputs of transport modelling typically used for transport appraisal.

Congestion pricing needed to harness economic benefits of major transport projects

Economics like there’s no tomorrow - NZIER Insight 32

Do you get the sense that New Zealand doesn’t invest in the major public infrastructure facilities like we used to? Previous generations built entire networks for rail, road, water and energy. Only Muldoon’s Think Big projects and the current ‘Roads of National Significance’ might compare. Major infrastructure investment decisions come down to how much we care about our future, and the future of our children and grandchildren. The government’s social discount rate policy captures in a single number how much decision makers care about the future relative to today. The default public sector stance is to use an 8% real (i.e. net of inflation) discount rate. But is 8% right?

Do you get the sense that New Zealand doesn’t invest in the major public infrastructure facilities like we used to? Previous generations built entire networks for rail, road, water and energy. Only Muldoon’s Think Big projects and the current ‘Roads of National Significance’ might compare. 

Additional Waitemata Harbour Crossing - preliminary business case report

The government’s National Infrastructure Plan highlights an additional Waitemata Harbour Crossing (AWHC) as an important priority to support the growth of Auckland. NZIER worked on this study with PricewaterhouseCoopers, Beca, AECOM, and SKM (who undertook the transport modelling and the ‘conventional’ economic appraisal). You can read the preliminary business case report here.

The government’s National Infrastructure Plan highlights an additional Waitemata Harbour Crossing (AWHC) as an important priority to support the growth of Auckland. The NZ Transport Agency (NZTA) commissioned a study to provide information and analysis to assist all stakeholders to form opinions and consider options: bridge or tunnel; timing; and funding.

Reprioritising infrastructure projects - NZIER Insight 26

The Government's infrastructure priorities now need to be reviewed in light of the cost of Christchurch's devastating earthquakes. However, the cost-benefit appraisals of major transport schemes that are likely to form part of the reprioritisation tend to understate the benefits. Thus there is a risk the wrong projects get weeded out or delayed when it would be better to look elsewhere to find the money needed to support Christchurch. We describe the reasons why, and provide some considerations that will help reduce this risk. In the long term we would argue for improvements to methodologies.

The cost of Christchurch’s devastating earthquakes means that the Government’s prior promises to undertake specific infrastructure projects now have to be reviewed. As the Finance Minister1  signalled, funding Christchurch’s recovery will prompt ‘a fairly hard look at our capital investment priorities to see whether they can be shuffled around’.

The challenge is to make the right tradeoffs about whether to abandon or delay a given infrastructure project and redirect those funds to Christchurch’s redevelopment or to continue as originally planned.

Reprioritising infrastructure projects - NZIER Insight 26

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The following item has been added to our website.

The Government's infrastructure priorities now need to be reviewed in light of the cost of Christchurch's devastating earthquakes. However, the cost-benefit appraisals of major transport schemes that are likely to form part of the reprioritisation tend to understate the benefits. Thus there is a risk the wrong projects get weeded out or delayed when it would be better to look elsewhere to find the money needed to support Christchurch. We describe the reasons why, and provide some considerations that will help reduce this risk.

Freight futures : long term sea freight scenarios

A report for the Ministry of Transport.

Port performance and ownership : an assessment of the evidence

A report prepared for the Local Government Forum.

Link to report.

Externalities: methods for attributing costs between internal and external components

Report to Ministry of Transport, June 2009 (link is to Ministry of Transport's website)

Report to Ministry of Transport, June 2009 (link is to Ministry of Transport's website)

The economics of congestion

Presentation by Jagadish Guria to the 8th Annual New Zealand Transport Summit, Wellington, 25 February 2008

Presentation by Jagadish Guria to the 8th Annual New Zealand Transport Summit, Wellington, 25 February 2008

Funding water services and infrastructure

Presentation by Brent Layton to the Water and Waste Association Conference, Rotorua, 21 September 2007

Presentation by Brent Layton to the Water and Waste Association Conference, Rotorua, 21 September 2007

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