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Regional economic effects of revitalization of industrial sites: an input-output approach

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  • Wim Wijnen
  • Walter Manshanden
  • Jos Muskens

Abstract

This subject of this paper is the regional economic effects of revitalisation of industrial sites. From an economic point of view an ageing industrial site is one with underused capacity that leads to a suboptimal level of investment. The assumption made in this paper is that due to markets failures space on industrial site is used inefficiently and that governments intervene to reduce underutilization of available space. Fieldwork and literature show that the economic effects of revitalization are one of the most important inputs for decision making on revitalization. The paper describes a model (ACER) for estimating the regional economic effects and the results of application of ACER on revitalization of ?Lage Weide?, an industrial site in the city of Utrecht. The starting point of ACER is an intervention on the industrial site, resulting in growth of firms and employment on the site or a change of composition of firms and employment. This change has an economic impact on the site itself and on the rest of the city. ACER estimates this impact in terms of employment. The basis of the model is a biregional input-output table describing all economic transactions of several industrial and service sectors with each other. The two regions distinguished in the biregional table are the industrial site and the rest of the city. The model gives the direct and indirect effects of revitalization for both the site and the rest of city in terms of employment broken down in gender and level of education as well as an indication of change in land prices. The development ACER is part of the EU-project MASURIN leaded by TNO MEP (Environment, Energy and Politics). MASURIN, the Management of Sustainable Revitalisation of Industrial Sites, aims at providing tools and knowledge for policy makers in cities and public bodies. Several institutes and cities participate in this project.

Suggested Citation

  • Wim Wijnen & Walter Manshanden & Jos Muskens, 2003. "Regional economic effects of revitalization of industrial sites: an input-output approach," ERSA conference papers ersa03p325, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa03p325
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    References listed on IDEAS

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    1. Munasinghe, M., 1993. "Environmental Economics and Sustainable Development," Papers 3, World Bank - The World Bank Environment Paper.
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