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Estimating the benefits of effectively and proactively maintaining infrastructure with the innovative Smart Infrastructure sensor system

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  • Morimoto, Risako

Abstract

An innovative sensor system, designated 'Smart Infrastructure,' is being developed jointly by Cambridge University in the United Kingdom and Massachusetts Institute of Technology in the United States. This system provides real-time wireless information about the state of critical infrastructure. The Smart Infrastructure sensors are designed to monitor infrastructure, such as water pipelines, as well as to increase their capabilities for purposes of efficient maintenance. This paper presents a forecasting model that assesses the possible impacts of Smart Infrastructure technology currently being applied to the British water pipe market. In doing so, we identify key benefits of proactively managing infrastructure with such new technology. A probabilistic cost benefit analysis, which takes into account future uncertainty, is conducted using a Monte Carlo simulation. Our findings suggest that if the Smart Infrastructure sensor system is applied to water pipelines in the British market, there are likely to be significant economic benefits. They could be realised by avoiding disruption and damage costs (including water loss) due to water pipe bursts, as well as by reducing annual operating and maintenance costs. The mean cumulative net present value of savings derived from the case scenario for the period through year 2056 was estimated at US$ 23.7 billion.

Suggested Citation

  • Morimoto, Risako, 2010. "Estimating the benefits of effectively and proactively maintaining infrastructure with the innovative Smart Infrastructure sensor system," Socio-Economic Planning Sciences, Elsevier, vol. 44(4), pages 247-257, December.
    • Handle: RePEc:eee:soceps:v:44:y:2010:i:4:p:247-257
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    References listed on IDEAS

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    1. Galina Alexeenko & Ed English & Laurel Graef, 2008. "Building a better world: infrastructure's role in economic growth," EconSouth, Federal Reserve Bank of Atlanta, vol. 10(2).
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    1. Martins, José & Marques, Rui Cunha & Cruz, Carlos Oliveira, 2014. "Maximizing the value for money of PPP arrangements through flexibility: An application to airports," Journal of Air Transport Management, Elsevier, vol. 39(C), pages 72-80.
    2. Zobel, Christopher W. & Baghersad, Milad, 2020. "Analytically comparing disaster resilience across multiple dimensions," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).
    3. Mohammed Aliu Momoh, 2019. "Private Participation in Infrastructure: The Nigerian Experience," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(9), pages 1-55, September.
    4. Annika Malm & Frida Moberg & Lars Rosén & Thomas Pettersson, 2015. "Cost-Benefit Analysis and Uncertainty Analysis of Water Loss Reduction Measures: Case Study of the Gothenburg Drinking Water Distribution System," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(15), pages 5451-5468, December.
    5. Nimesha Sahani Jayasena & Daniel W. M. Chan & Mohan M. Kumaraswamy, 2022. "Is Public–Private Partnership (PPP) a Preferred Strategy for Procuring Smart Infrastructure in Developed Countries: An Empirical Study of the Perceived Benefits, Barriers and Recommended Strategies," Sustainability, MDPI, vol. 14(11), pages 1-25, May.

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