1. Waterway benefits valuation & economic assessments

2. Background 1Principles 2Economic welfare analysis - Waterways in Wales case study 3 Economic impact analysis - Kennet & Avon Canal case study - 4 Sustainability (Quality of Life) indicators - - Droitwich Canal case study

3. Principles  Appraisals & evaluations  Used to forecast / evaluate change against a baseline  Measurement of absolute change in people‘s quality of life:  Economic welfare analysis / Sustainability indicators  Measure of spatial impacts  Economic impact analysis

4. Welfare analysis Introduction Used to compare between alternatives  Alternative may be Do Nothing  Need to consider counterfactual scenario Cost – benefit analysis  Monetarisation of benefits Multi-criteria analysis

5. Welfare analysis Ecosystems services approach Provisioning services Products / services provided by the ecosystem  Transport – cost savings  Water supply  Renewable energy  Property premium value  Volunteering

6. Welfare analysis Ecosystems services approach Regulating services Benefits obtained through the regulation of ecosystems processes  Carbon savings – transport & renewable energy  Drainage, water conveyance & flood protection  Water regulation and pollution dilution  Water quality

7. Welfare analysis Ecosystems services approach Cultural services The non-material benefits people obtain from the environment  Recreation & tourism (use benefits)  Non-use benefits - heritage, environment, visual amenity  Education  Health & well-being

8. Welfare analysis Measurement 1. Direct market assessments 2. Value transfers Monetarisation of benefits 3. Non-market valuation Revealed preference Hedonic pricing Travel Cost Method Stated preference Contingent valuation (WTP/WTA) Choice experiments

9. Waterways in Wales (2007) Annual direct revenue & costs Cost of maintenance / management£3.3m Income£1.4m Net annual cost£1.9m Land drainage£2.4m Recreation / tourism£5.7 – 8.2m Non-use£2.5 – 5.0m Health & well-being£0.0 – 3.2m Total welfare benefits£10.6 – 18.8m Annual welfare benefits

10. Economic impact analysis  Spatial (redistribution) impacts  Employment is often key measure Regional development projects eg.ERDF Jobs created / jobs retained  Direct employment assessment  Indirect employment assessment – Tourism multipliers Based on growth in annual visitor spend from baseline Income multipliers – indirect / induced expenditure; money retained in local economy Employment multipliers – FTE jobs  Deadweight / displacement issues

11. Economic impact analysis Other outputs / outcomes may be required, depending upon funding source:-  Heritage / environment enhancement / conservation  Training places delivered  Area of derelict / brownfield land improved

12. Kennet & Avon Canal Restoration Kennet & Avon Canal

13. Kennet & Avon Canal Restoration  140 km-long waterway, linking R.Thames with Bristol  Opened 1810  Closed to through navigation 1955  Gradual re-opening over next 30 years through partnership comprising British Waterways, local authorities, canal trust & association of canal businesses  Re-opened 1990. However re-opening not sustainable in long-term  €44m Heritage Lottery-funded scheme approved 1996 to secure the canal‘s long-term future  Canal officially re-opened 2003  Evaluation programme. Latest 2009

14. Kennet & Avon Canal Restoration Impacts – Tourism & recreation Tourism & recreation activity 2009 Visits per year – 11.2m Boats based on the canal – 1,416 Gross direct visitor spend per year - £42m (€49m) Change in activity 1995 – 2009 Increase in visits – 46%

15. Kennet & Avon Canal Restoration Impacts – Employment Tourism & recreation-related FTE jobs supported 2009 – 1,306 FTE jobs created by restoration – 500 FTE jobs secured through restoration - 700 Waterside developments Investment in canalside developments 1995-2005  £375m-£435m (€440m-€510m)  2,700 FTE jobs supported in these developments

16. Kennet & Avon Canal Restoration Impacts – Qualitative  Establishment of developer & investor confidence, especially in derpived areas  Improved canal environments bring forward the development of vacant / under-used sites  Linear nature of canals helps integrate elements of development sites  Canalside sites help enhance vitality & vibrancy of an area – creates market for leisure-related development  Waterside residential developments have premium value – c20%

17. Sustainability (QoL) Indicators Brings together welfare & economic impact assessments into a single framework Related to sustainability priorities (eg. In England – National Quality of Life Count indicators) Indicators may be monetarised, other quantitative, qualitative, physical or descriptive Drives the monitoring & evaluation framework for a project Helps resolve conflicting priorities Process and result indicators

18. Droitwich Canal Restoration Quality of Life Indicators 1. Maintaining high and stable levels of economic growth & employment Investment in physical assets Assets created / improved Investment realised / resulting Growth in the waterway-based economy Business start-ups Maintaining high & stable levels of employment Jobs created / secured

19. Droitwich Canal Restoration Quality of Life Indicators 2. Social progress which recognises the needs of everyone Tackling poverty & social exclusion Access by – disabled people; ethnic minorities; elderly people etc. Equip people with the skills to fulfil their potential Education Training & skills development Community action & volunteering Improve overall health of the population Increased physical activity by local people Reduce crime & fear of crime (Statement outlining measures taken & impacts)

20. Droitwich Canal Restoration Quality of Life Indicators 3. Effective protection of the environment Improved choice in travel Sustainable transport impacts. Improved river quality Water quality status Re-using previously developed land „Brownfield“ land restored / reclaimed Increasing satisfaction with quality of life Heritage restored / improved / secured Development in rural areas Enhanced biodiversity – habitats & species

21. Droitwich Canal Restoration Quality of Life Indicators 4. Prudent use of natural resources Waste reduction, re-use, recycling & recovery Dealing with contaminated land Waste disposed off / used on site Volume of recycled material / secondary aggregates used