The Principal Economics team collaborated with a large team of frontier researchers and practitioners and developed a transport appraisal methodology that is grounded in an accessibility framework and integrates travel behaviour, environmental impacts and economic principles.

The project sought to address limitations in the current appraisal methodology, which although well-established, has notable limitations. To address these, the research considered the pros and cons of six potential appraisal methodologies, drawing on the identified advantages of each to establish an access-based synthesised accessibility appraisal methodology as an alternative.

The synthesised methodology will improve land-use and transport policy integration. It:

Our team has applied the synthesised accessibility appraisal methodology to three case studies. A comparison of the outcomes produced by the synthesised accessibility appraisal methodology with those generated from a status quo appraisal highlighted the importance and usefulness of the new approach. The new methodology was shown to cohesively combine various components of land-use and transport policy, and provide transparent information for decision-makers, and demonstrated it could lead to significantly higher benefit–cost ratios if the potential benefits of transport projects and programmes are accommodated by permissive land-use policies.

This article identifies and evaluates possible methodologies for estimating the capital value of New Zealand’s local road network. Local councils and central government agencies could use the findings to address the current inconsistencies in valuation approaches and enable better-informed decision-making for local road investment, maintenance, and user charges. The outputs will improve our understanding of the socio-economic and financial costs of providing and using the New Zealand transport system. The article discusses that the commonly used accounting-based valuation methods underestimate roads’ (economic) value. Suppose the purpose of a valuation is to prioritise investment. In that case, an accounting-based approach prioritises costlier road linkages instead of those with the highest economic value.

This report provides a technical description of the Regional Land Transport Demand Model (RLTDM), which is a hybrid approach to forecasting transport demand across New Zealand regions. The model’s outputs include deterministic and stochastic forecasts of a wide range of economic and transport series. We re-coded the model in Stata and Mata.

Accreditation is a crucial part of New Zealand’s quality infrastructure. The accreditation services provided by International Accreditation New Zealand (IANZ) increase the confidence of New Zealand and overseas consumers to purchase products that are produced or tested by accredited organisations. In this report we provide an independent assessment of the economic impact of IANZ.

Accreditation services create an 8 percent price premium for exporters through reduced transaction costs, which leads to improved productivity and profitability. We used our extensive Computational General Equilibrium (CGE) model of the New Zealand economy and identified that IANZ’s accreditation services lead to:

• a total increase in exports by $3.4b, consisting of an $8.2b increase in exports of industries using accreditation offset by a decrease in exports of industries not using accreditation,
• 1.6 per cent higher real wages, which increases consumption by $3.3b,
• $2.4 billion increase in annual GDP of New Zealand.

Aotearoa New Zealand suffers from an infrastructure deficit. Without the key infrastructure needed now for our economy to thrive, we deprive future generations from significant economic prosperity. While transformational infrastructure projects necessitate time to be developed into sound technical solutions to our needs, many New Zealand projects are further delayed by policy decision and financing constraints.
In this novel application of the infrastructure Wider Economic Benefits approach, we quantify the cost to society of these further delays for the first time, by using the example of the Waikato Expressway. We used our subregional CGE model to estimate the downstream benefits of the Expressway. At a high-level, results of our analysis quantify the annual benefits of having the Waikato Expressway in the economy. Without the expressway in function as early as possible, $334 million of economic benefits were forgone each year.

Cite this article

Principal Economics. (2022). Great decisions are timely: Benefits from more efficient
infrastructure investment decision-making. Report to Infrastructure New Zealand.