Economic efficiency of brownfield regeneration: Study of South Moravian projects

Abstract

The objective of brownfield regeneration is to increase the attractiveness and value of individual sites to a level where they can compete directly with the construction of a greenfield project. The aim of this paper is to examine the economic efficiency of brownfield regeneration. By using CBA outputs, the contribution of socio-economic efficiency to the total efficiency of individual projects based on EBCR was investigated on the basis of a sample of 14 projects located in the South Moravian Region. Furthermore, the expected value of EBCR was simulated by using the Monte Carlo method. The results reveal that socio-economic efficiency contributes significantly to the overall efficiency of these projects and therefore cannot be neglected during their evaluation. At the end of the paper, future research directions in this area are outlined.