CBA of Westfield Bondi Junction Niki Alcorn Saul
CBA of Westfield Bondi Junction Niki Alcorn, Saul Ryan & Stuart Yardley June 2004
CBA of Westfield Bondi Junction • Why we chose this project? – Scale of redevelopment – Killing time on a bus – Negative local responses to development taking place
CBA of Westfield Bondi Junction • History: – Bondi Junction – Westfield – Development Project • Reconstructed Financial Appraisal: – decision criteria – NPV and IRR • Philosophical/ethical reasons for CBA: – PIC/PPIC – Shadow prices (market distorted, non marketed goods, project bidding up inputs) – More meaningful analysis of efficiency and overall social net benefits
CBA of Westfield Bondi Junction • Data Sources and Methodology – Westfield – Waverly Council/local councillors – Economic Impact report – Traffic Reports – NSW Planning Office – ‘reconstruction’ – Using secondary studies and data and applying for non valuing non market goods – Bondi Chamber of Commerce – Estate agents – Internet, news articles etc
CBA of Westfield Bondi Junction • CBA – Rentable retail space – tax? Rates? Rents? Using SP – Labour – incremental vs displaced, taxes, skilled vs unskilled , Use SP – Raw Materials/Construction inputs – Council conditions required for WF to meet eg env and transport – Car Parks – lease rev, what ppl pay – Other components in FA - re-price using shadow prices – (Consider complements/substitutes) (Consider change in CS and PS) • Comparative Analysis: – FA vs CBA – does it over/underestimate? • Externalities – Traffic/congestion (before, during, after? ), Pollution (noise/litter), Crime, Landfill
- Slides: 5