Economics of place

Abstract

This chapter focuses on the economic impacts of placemaking. The chapter is divided into six sections. The first examines the relevant literature on the economic value of placemaking. The second focuses on cost-benefit analysis (CBA) focusing on several key questions: When to conduct the CBA; what to measure and how to measure it; what timeframe to use; and what is the size of the impacted area. The third discusses how economic modelling can be used to estimate the value of places using walkability as an indicator of “good places”. This is followed by a discussion of how willingness to pay (WTP) can be used to assess economic value of placemaking. The fifth section examines how financial analysis is used to assess project feasibility. The final section explains what a business case is and why it is a critical link between a project’s economic characteristics and implementation.