Cost Benefit and Economic Impact Assessment of urban forms

Social Cost Benefit Analysis and Economic Impact Assessment of Different Urban Forms

SGS was commissioned by the Department of Sustainability and Environment to prepare a formal Cost Benefit Analysis and Economic Impact Assessment of three scenarios for urban forms to cater for Melbourne's future growth and development: business as usual, Melbourne 2030 (M2030) and accelerated outwards expansion. SGS identified and subsequently quantified the most significant triple bottom line costs and benefits that would be experienced in a redirection of Melbourne's growth and development.

An Economic Impact Assessment was also undertaken to measure how the net resources saved by embracing M2030 would contribute to Victorian productivity and, consequently, overall economic activity. The Victorian economy was simulated through input-output modelling, and introduced a net increase in final demand commensurate with the resources saved on an annual basis, reflecting their reinvestment in productive activities elsewhere in the economy once M2030 has taken effect. The paper concluded that the adoption of M2030 is both economically efficient and equitable. Moreover, the movement to M2030 is likely to offer a marked productivity boost to the Victorian economy.