Estimation of increased regional income that emanates from economically justified road construction projects
Date
2005
Authors
Pienaar, W. J.
Journal Title
Journal ISSN
Volume Title
Publisher
AOSIS OpenJournals
Abstract
This article identifies the possible development benefits than can emanate from economically justified road construction projects. It
shows how the once-off increase in regional income resulting from investment in road construction projects, and the recurring
additional regional income resulting from the use of new or improved roads can be estimated. The difference is shown that exists between
a cost-benefit analysis (to determine how economically justified a project is) and a regional economic income analysis (to estimate the
general economic benefits that will be developed by investment in and usage of a road). Procedures are proposed through which the
once-off and recurring increases in regional income can be estimated by using multiplier and accelerator analyses respectively. Finally
guidelines are supplied on the appropriate usage of input variables in the calculation of the regional income multiplier.
Description
The original publication is available at http://www.satnt.ac.za/
Keywords
Increased regional income, Road construction projects, Cost-benefit analysis, Regional economic income analysis, Regional income multiplier
Citation
Pienaar, W.J. 2005. Estimation of increased regional income that emanates from economically justified road construction projects. Suid-Afrikaanse Tydskrif vir Natuurwetenskap en Tegnologie, 24(4), 108-117.