A MODEL VALUATION OF ECONOMIC AND SOCIAL EFFECTS - A CASE STUDY OF THE OLSZTYN RING ROAD CONSTRUCTION

Abstract

This article raises the question of transport infrastructure as a principal component of the social and economic system in any region of the world. Development of transport infrastructure leads to the so-called accumulation of effects obtained through various channels, e.g. upgraded communication and transportation technologies, shorter transit time, lower transport costs, improved safety and better long-term economic output in a given community. This paper presents a model valuation of economic and social effects of an investment made into road transport infrastructure based on a case study of the ring road designed to be constructed around Olsztyn. Analysis of the effects was based on the CBA (cost and benefit analysis) methodology, which is for example employed to evaluate the EU co-financed projects. The method presented herein will ensure more precise valuation of effects generated by planned investment projects and will be a tool supporting the decision-making process.