Location advantages through infrastructure

Study by EcoAustria and WIFO estimates the regional economic effects of investments

Infrastructure projects are an important driver of Austria's competitiveness. This is shown by a recent study by EcoAustria and WIFO, which examines the economic effects of five selected ASFINAG projects. The construction and operating phases were evaluated: while construction generates added value and employment in the short term, the operating phase generates the actual economic benefits - through improved accessibility, higher productivity and increased attractiveness of the location.

Results at a glance

• S1 Vienna Outer Ring Expressway: Significant location gain - net present value of € 4 billion at a cost of € 2.3 billion. Particularly strong effects in international goods traffic.
• S10 Mühlviertel expressway: benefits (€ 420 million) exceed costs (€ 266 million); strengthens Upper Austria as an industrial location.
• A5 North/Weinviertel highway: full expansion to the Czech Republic brings considerable location gains; operating benefits (€ 850 million) exceed construction costs (€ 61 million) many times over.
• S34 Traisental expressway: benefits (€ 265 million) above costs (€ 235 million); effects limited to the region.
• S36 Murtal expressway: costs (€ 452 million) exceed benefits (€ 350 million); positive impact limited to construction phase.

Infrastructure has a double impact
'Infrastructure projects have a double impact. While value creation and employment are associated with the construction phase in the short term, the actual economic benefit lies in the operating phase. Improved accessibility boosts productivity and thus the locational advantages of regions - and this is precisely where the long-term contribution of these investments to Austria's competitiveness lies,' emphasizes Wolfgang Schwarzbauer, Head of Regional Economic Policy and Foreign Trade Research at EcoAustria.

Infrastructure investments are a foundation for growth and location quality. Only the interplay between the construction and operating phases can unfold the full macroeconomic effect.economic perspective in focus - other aspects not taken into account
The analysis focuses on the economic effects of the construction projects, in particular the medium-term effects on the location. However, aspects such as congestion costs, accident risks, emissions, quality of life and land consumption are not fully taken into account. For a comprehensive assessment of the measure, social and ecological criteria should therefore be included in addition to economic criteria - as is customary in the context of environmental impact assessments for road construction projects, for example.