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The Cost Benefit Analysis for the Concept of a Smart City: How to Measure the Efficiency of Smart Solutions?

Author

Listed:
  • Kamila Turečková

    (Department of Economics and Public Administration, School of Business Administration in Karvina, Silesian University in Opava, Univerzitni Nam. 1934/3, 733 40 Karvina, Czech Republic)

  • Jan Nevima

    (Department of Economics and Public Administration, School of Business Administration in Karvina, Silesian University in Opava, Univerzitni Nam. 1934/3, 733 40 Karvina, Czech Republic)

Abstract

This paper is dedicated, both theoretically and conceptually, to a methodical approach towards the efficiency evaluation of proposed smart city solutions. The implementation of smart solutions in proposed projects and activities is supported by a complex assessment of benefits and costs as part of a cost benefit analysis (CBA) with the goal of maximizing the efficiency of such a solution, especially in the case of public activities for which it is typical to lack a market evaluation. A smart solution can be defined as an innovative and functional approach towards solving situations in a responsible way and with positive consequences for society. These smart solutions represent the core of the smart city concept, which together with the smart region concept presents a new economic domain where new markets or market segments offering innovative and intelligent (tangible and intangible) solutions for said cities and regions can be developed. CBA and feasibility analyses represent suitable tools for evaluation of socially and economically acceptable projects and their implementation in real life. The efficiency of these solutions is then proved by benefit and cost comparisons under the condition that these outcomes are acceptable for all stakeholders. Methodically, the paper is structured inductively. The detailed literature review provides the basis for a formulation of general principles of using a CBA for innovative smart city solution efficiency evaluations based on chosen cases, for example, from the Moravia Silesian region. Due to the originality of each submitted project, it is possible to use this proposed methodical approach of CBA applications as a primary analytical frame and it is necessary to add the specific attributes of each solution that is being evaluated.

Suggested Citation

  • Kamila Turečková & Jan Nevima, 2020. "The Cost Benefit Analysis for the Concept of a Smart City: How to Measure the Efficiency of Smart Solutions?," Sustainability, MDPI, vol. 12(7), pages 1-17, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2663-:d:338020
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Marian Lebiedzik, 2020. "Application of the Global Concept of “Smart City” at the Local Level of the Karviná District," Sustainability, MDPI, vol. 12(17), pages 1-14, September.
    2. Kamila Turečková & Stanislav Martinát & Jan Nevima & František Varadzin, 2022. "The Impact of Brownfields on Residential Property Values in Post-Industrial Communities: A Study from the Eastern Part of the Czech Republic," Land, MDPI, vol. 11(6), pages 1-21, May.
    3. Kamila TURECKOVÁ & Jan Nevima & František Varadzin & Jakub Trojan & Anna Vanová & Darina Rojíková & Stanislav Martinát, 2023. "Deployment of creative actors and varieties of their impact on the quaternary sector and regional growth:a case study of NUTS2 regions of the Czech Republic," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 14, pages 181-197, June.
    4. Eva Daniela Cvik & Radka MacGregor Pelikánová, 2021. "The Significance of CSR During COVID-19 Pandemic in the Luxury Fashion Industry - A Front-Line Case Study," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 7(1), pages 109-126.
    5. Johnson Opoku-Asante & Emmanuel Bobobee & Joseph O Akowuah & Eric Amoah Asante, 2024. "Evaluation of integrated threshing and drying design concepts for paddy rice using analytical hierarchy process," International Journal of Agricultural Research, Innovation and Technology (IJARIT), IJARIT Research Foundation, vol. 14(01), June.
    6. Radka MacGregor Pelikánová & Martin Hála, 2021. "CSR Unconscious Consumption by Generation Z in the COVID-19 Era—Responsible Heretics Not Paying CSR Bonus?," JRFM, MDPI, vol. 14(8), pages 1-19, August.
    7. Kamila Borseková & Anna Vaňová & Janka Šúrová & Pavol Kráľ & Kamila Turečková & Jan Nevima & Stanislav Martinát, 2021. "The Nexus between Creative Actors and Regional Development," Land, MDPI, vol. 10(3), pages 1-18, March.
    8. Osama Ahmed & Walid Sallam, 2020. "Assessing the Potential of Improving Livelihoods and Creating Sustainable Socio-Economic Circumstances for Rural Communities in Upper Egypt," Sustainability, MDPI, vol. 12(16), pages 1-23, August.
    9. Yelena Popova & Sergejs Popovs, 2022. "Impact of Smart Economy on Smart Areas and Mediation Effect of National Economy," Sustainability, MDPI, vol. 14(5), pages 1-19, February.
    10. Yue, Aobo & Mao, Chao & Wang, Zhuoqi & Peng, Wuxue & Zhao, Shuming, 2024. "Finding the pioneers of China's smart cities: From the perspective of construction efficiency and construction performance," Technological Forecasting and Social Change, Elsevier, vol. 204(C).

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