Case Studies

Background

Roads are essential in regional communities as they connect people to their places of work, schools, shops, friends, and family. For many regional areas, the health and livelihood of its residents rely on the quality of roads. Thus, an Economic Analysis is required to identify the potential direct and indirect economic contributions and to assess the economic impact of road maintenance and management in each of the six department-defined regions in regional and metro Victoria.

Project Goals

The economic modelling aims to demonstrate the economic flow-on benefits at a regional level that will result from the program’s budget. The road maintenance program occurs over two years with the program’s budget assumed to be evenly spread across both years. The ability to leverage the direct regional stimulus across each region directly relates to local capability, specifically access to skills and employment in Heavy & Civil Engineering Construction and industries which support this sector within each region. 

REMPLAN’s Involvement

REMPLAN supported the Department of Transport by undertaking an Economic Analysis using REMPLAN’s regional economic modelling and analysis system. REMPLAN applied REMPLAN’s economic data for each of the five regions incorporating data sourced from ABS 2016 Census, 2016/2017 ABS National Input/Output Tables, and ABS Gross State Product.  

Results

Based on the analysis, the economic benefits for ‘Victoria’ per year of the $659.415 million road maintenance investment exceed the aggregated benefits of the six transport regions. The greater benefits for ‘Victoria’ result from the escape expenditure which occurs when analysis is performed for the smaller sub-regions. The ‘Victoria’ data captures all expenditure occurring across the sub–regions.