Economic Assessment Methods

The course consists of weekly lectures (Tuesday) and their associated weekly exercise/workshop sessions (Thursday). The lectures are grouped in 3 parts: "1 – Understanding & planning infrastructures", "2 - Economic assessment of infrastructures" and "3 - Current challenges & adaptation requirements of infrastructures". Part 1 aims to teach students how to examine & plan infrastructures. It begins with insights into the main organizational characteristics of technical and social infrastructure systems (such as water supply, waste water disposal, electricity supply, transport facilities or educational facilities) as well as their importance for the development of cities and regions. In this part, students will also learn about the planning process of infrastructure projects the examination of suitable locations. The financing of infrastructures will also be addressed. Part 2 will address how to evaluate infrastructure economically. First, students will get to know how to conduct feasibility studies for infrastructure projects. Afterwards, students will learn the basics of common economic evaluation methods and how to apply them. Next to financial mathematical principles, students will learn to master the most commonly used economical valuation methods needed for decision-makers of large infrastructure projects (discounted cash flow, net present value, and cost-benefit-analysis). Furthermore, the course will impart basic knowledge about project management. The focus of part 3 is on making infrastructure fit for the future. There, the current challenges of urban and rural development will be addressed (e.g. demographical change, climate change) as well as ecological modernization. Expanding of the basics of economic assessment learned in part 2, students will learn economic valuation methods for environmental assets. The topic of the vulnerability of infrastructures to current risks (e.g. wars, climate change) and the possible approaches to limit the impacts of negative events (adaptation strategies) will conclude this course.