Balancing economic, social and environmental value in transport infrastructure business models

There is ongoing debate about the value of the benefits of infrastructure systems (specifically those of energy, water and wastewater, transport, waste, and communications) and how to prioritize infrastructure investments to encompass considerations of social, economic and environmental wellbeing. The use of the term ‘infrastructure system’ is related to interdependencies. Infrastructure systems operating in different countries and cities are interrelated in different ways, but all have a strong relationship to ‘transport’ – there is a cost and a utility associated with movement. Infrastructure systems are ultimately created to serve individuals, who place a value on them. In order to explore all forms of value realisation – the foundation for what are commonly termed business models – the relationship between an individual and the transport system needs to be established. The hypothesis being tested in this thesis is that it is possible to identify both the full range of value and interdependencies required, and hence to establish robust alternative business models, for transport infrastructure interdependencies management that incorporate considerations of social, economic and environmental wellbeing, noting that the interdependencies lie with the other four national infrastructure sectors in the UK (see above). Different research methods were used for each type of value. Economic value was studied using the research methodology of ‘networks and cohorts’ on input-output tables and applying linear analysis to the data. Social value was studied by collecting data with a structured interview process and analysing this with the appropriate statistical methods. Environmental value was taken from previous studies which linked it with the economic value (demand) of the input-output tables. Economic and environmental value interdependencies were analysed through Pearson’s correlation coefficient of secondary data, while social value interdependencies were analysed through statistical analysis of primary data. The new business model captures a wide range of the values of social, economic and environmental considerations on infrastructure systems. The new business model permits better understanding of how the overall system works by policy makers and hence better decisions on which type of infrastructure to focus on if they want to add value to society

Next Generation Infrastructure Interdependencies: An economic deterministic model of transport interdependencies in the United Kingdom

The role of infrastructure interdependencies is challenging due to the complexity and dynamic environment of all infrastructures and vital for critical infrastructure systems. There is an ongoing debate about the value of the benefits of the five national infrastructure sectors (energy, water, transport, waste and communication) in the UK and how they interact in terms of social, economic and environmental wellbeing , . This study focuses only on one of the three aforementioned values, the economic value. The hypothesis tested is whether the transport sector is economically complemented by the energy, water and waste sectors and economically substituted by the communication sector1. The authors use the process analysis “networks and cohorts”, an analysis that uses tables, diagrams, models and networks of interactions along with organizational linkages . Of interest for this study in particular is the grand total of all revenues (capital value) which create incomes into other sectors and creates dependencies. This, by definition, is the Gross Value Added. The last five symmetric (product by product) Input-Output tables of gross value added are used: 2010, 2005, 1995, 1990 and 1984 . The theory underpinning the hypothesis was verified and one mathematical equation was developed based on the historical data of the gross value added by the value created in millions of pounds (£m) from the other critical sectors to transport

The individual as the key-stakeholder of Next Generation Infrastructure: Defining the social value of transport infrastructure in the United Kingdom

The idea of social value has arisen from the psychological approach, and more specifically it is based on the principle of “independence of irrelevant alternatives” from the game theory introduced by Luce and Raiffa1. According to this, each alternative situation has an utility/value for the individual, which is a function of the features of the alternative situation and of the features of the individual who makes the choice. Beyond that, it assumed that the individual, who makes the choice, has a clear and measurable knowledge of the value, which each choice provides. Although even after the evaluation of each choice, it is a tentative situation regarding the choice of the individual. In other words, there is an element of possibility. Under the same principle of Luce and Raiffa, the possibility of a choice is in direct ratio to its value. The above mentioned assumptions constitute the “strict utility choice mode”. The exponential form of the value function is achieved by simple transformations of the “strict utility choice mode”,where X and S have a linear correlation. The exponential functions of the total value have a sigmoid form relative to the linear function of the value of the possible choice. This means that the exponential function may have a sigmoid form relative to the X-axis or Y-axis, based on the defined axes and values. The key challenge addressed is a quantitative sense of value, when the perceptions of value are qualitative. To measure social value quantitatively is challenging, since it is observed that pricing systems are “not based primarily on the users’ identity or activity”, but on the ability and willingness of the final user to pay. The social value gained by the individual is difficult to calculate, since it is defined by human behaviour and human needs. According to Maslow's Hierarchy of Needs, these needs belong to specific groups with specific hierarchy. Maslow developed value (utility) curves of each category of need relative to the age of the individual. The sum of the curves gives an almost sigmoid curve. Winters et al. created a Transportation Hierarchy of Needs and they found the following transport hierarchy of needs: [1] safety and security, [2] time, [3] societal acceptance, [4] cost and [5] comfort and convenience. This research studied value as something holistically affected by all the above factors (time, cost, comfort and convenience, safety and security), without considering their ranking, by asking individuals representative of the UK’s demography to evaluate the social value of eight transport modes (walking, cycling, rail, bus, car, taxi, water and air) and each factor for each mode with a questionnaire survey. The hypothesis tested is that the value to the individual, collectively, from the aforementioned factors should have an almost sigmoid curve, which was verified

Transport Infrastructure Interdependencies with Energy, Water, Waste and Communication Infrastructure in the United Kingdom

The role of infrastructure interdependencies is challenging due to the complexity and dynamic environment of all infrastructures and vital for critical infrastructure systems. There is an ongoing debate about the value of the benefits of the five national infrastructure sectors (energy, water, transport, waste and communication) in the UK and how they interact in terms of social, economic and environmental wellbeing (Hall et al., 2016, p.10; iBUILD, 2015; Liveable Cities, 2015; National Infrastructure Plan, 2013). This study focuses only on one of the three aforementioned values, the economic value. The hypothesis tested is whether the transport sector is economically complemented by the energy, water and waste sectors and economically substituted by the communication sector. The authors use the process analysis “networks and cohorts”, an analysis that uses tables, diagrams, models and networks of interactions along with organizational linkages (Hill, 1993). Of interest for this study in particular is the grand total of all revenues (capital value) which create incomes into other sectors and creates dependencies. This, by definition, is the Gross Value Added. The last five symmetric (product by product) Input-Output tables of gross value added are used: 2010, 2005, 1995, 1990 and 1984 (Office for National Statistics, 2015). The theory underpinning the hypothesis was verified and one mathematical equation was developed based on the historical data of the gross value added by the value created in millions of pounds (£m) from the other critical sectors to transport

Infrastructure Management: Development of a Business Model for Transport Infrastructure Interdependencies Management

There is ongoing debate about the value of the benefits of infrastructure systems (specifically those of energy, water & wastewater, transport, waste, and communications) and how to prioritize infrastructure investments to encompass considerations of social, economic and environmental wellbeing. The use of the term ‘infrastructure system’ is related to interdependencies. Infrastructure systems operating in different countries and cities are interrelated in different ways, but all have a strong relationship to ‘transport’ – there is a cost and a utility associated with movement. Infrastructure systems are ultimately created to serve individuals, who place a value on them. In order to explore all forms of value realisation – what is commonly termed a business model – the relationship between an individual and the transport system needs to be established. The hypothesis being tested in this paper is that it is possible to identify both the full range of value interdependencies required, and hence to establish a robust business model, for transport infrastructure interdependencies management in terms of social, economic and environmental wellbeing with the other four national infrastructure sectors in the UK (see above). Different research methods were used for each type of value: economic and environmental value were analysed through Pearson correlation coefficient of secondary data, social value was analysed through statistical analysis (mean, median, mode) of primary data. The new business model challenges the monodirectional value creation of more traditional business models by considering the interdependent bidirectional value creation

The Environmental Value of Sustainable Transport Infrastructure

The climate change threat to humanity challenges the creation of sustainable transport infrastructure based on the triptych of balancing and maximising environmental, economic and social value. A piece of infrastructure may be created in a sustainable manner, but may be then subsequently used unsustainably, that would not be sustainable. In other words, sustainable transport infrastructure is linked with the use of the most sustainable transport choices. Environmental value may be defined by the natural and anthropogenic factors and elements which interact with and influence the natural ecosystem, quality of life, and human health and well-being. Emissions are a widely accepted way by the Food and Agriculture Organization of the United Nations to “calculate” environmental damaging actions. Emissions address the production of pollutants and the placement of waste into the environment. The target is to reduce the use of transport modes with high environmental impact (e.g. cars) and replace them with transport modes with low or no environmental impact (e.g. public transport, walking, cycling). The hypothesis tested is that each individual should be able to understand which transport mode is the most sustainable and investigate whether each individual will accept the use of alternative options that consume less energy and generate fewer emissions. The methodology used was statistical inference. The hypothesis regarding the individuals’ understanding was verified with some deviations and a table with the environmental infrastructure interdependencies was developed based on EXIOBASE 3 database using the emissions generated from each transport sector for comparison purposes

Εξισορρόπηση της οικονομικής, κοινωνικής και περιβαλλοντικής αξίας στα επιχειρηματικά μοντέλα των συγκοινωνιακών υποδομών

There is ongoing debate about the value of the benefits of infrastructure systems (specifically those of energy, water and wastewater, transport, waste, and communications) and how to prioritize infrastructure investments to encompass considerations of social, economic and environmental wellbeing. The use of the term ‘infrastructure system’ is related to interdependencies. Infrastructure systems operating in different countries and cities are interrelated in different ways, but all have a strong relationship to ‘transport’ – there is a cost and a utility associated with movement. Infrastructure systems are ultimately created to serve individuals, who place a value on them. In order to explore all forms of value realisation – the foundation for what are commonly termed business models – the relationship between an individual and the transport system needs to be established. The hypothesis being tested in this thesis is that it is possible to identify both the full range of value and interdependencies required, and hence to establish robust alternative business models, for transport infrastructure interdependencies management that incorporate considerations of social, economic and environmental wellbeing, noting that the interdependencies lie with the other four national infrastructure sectors in the UK (see above). The new business model captures a wide range of the values of social, economic and environmental considerations on infrastructure systems. The new business model permits better understanding of how the overall system works by policy makers and hence better decisions on which type of infrastructure to focus on if they want to add value to society.Η παρούσα έρευνα αφορά την αξία των συστημάτων υποδομής των συγκοινωνιών, της ενέργειας, του νερού, των αποβλήτων και των επικοινωνιών. Εξετάζει επίσης σε ποιο τμήμα των υποδομών να δοθεί προτεραιότητα ώστε να αυξηθεί η κοινωνική, οικονομική και περιβαλλοντική αξία. Τα σύστημα υποδομής χαρακτηρίζονται από μια σειρά από αλληλεξαρτήσεις. Τα συστήματα υποδομής που λειτουργούν σε διάφορες χώρες και πόλεις είναι αλληλένδετα με διαφορετικούς τρόπους, αλλά όλα έχουν μια ισχυρή σχέση με τις «μεταφορές» – υπάρχει ένα κόστος και μια χρησιμότητα που συνδέεται με τη μετακίνηση. Οι χρήστες αυτών των συστημάτων αποδίδουν μια αξία σε αυτά τα συστήματα. Προκειμένου να διερευνηθούν όλες οι μορφές αξίας – η οποία αποτελεί τη βάση των επιχειρηματικών μοντέλων – πρέπει να καθοριστεί η σχέση μεταξύ του ατόμου και του συστήματος μεταφορών. Η υπόθεση που ελέγχθηκε στη διατριβή είναι το να προσδιοριστεί τόσο το πλήρες φάσμα της αξίας όσο και οι αλληλεξαρτήσεις που προκύπτουν, και ως εκ τούτου να δημιουργηθούν ισχυρά εναλλακτικά επιχειρηματικά μοντέλα για τη διαχείριση των αλληλεξαρτήσεων αυτών. Αυτά τα επιχειρηματικά μοντέλα ενσωματώνουν εκτιμήσεις κοινωνικής, οικονομικής και περιβαλλοντικής ευημερίας. Το νέο επιχειρηματικό μοντέλο που αναπτύχτηκε στη διδακτορική διατριβή αποτυπώνει ένα ευρύ φάσμα των αξιών των κοινωνικών, οικονομικών και περιβαλλοντικών εκτιμήσεων στα συστήματα υποδομής. Το νέο επιχειρηματικό μοντέλο επιτρέπει την καλύτερη κατανόηση του τρόπου με τον οποίο λειτουργεί το συνολικό σύστημα από τους υπεύθυνους χάραξης πολιτικής. Ως εκ τούτου, συμβάλει στο να παρθούν καλύτερες αποφάσεις για το είδος της υποδομής που θα πρέπει να δοθεί βάρος προκειμένου να προστεθεί αξία στην κοινωνία