Economic Evaluation Case Studies (IRP2-WP5)


This work package is undertaking five case studies to test the integrated economic evaluation framework.  In each case study, we will:

  1. Understand the issue or problem and knowledge gap analysis by collecting and reviewing relevant information (such as benefits, costs, timeframe, major stakeholders, regulatory framework, current business model, etc.);
  2. Assess the potential of benefit transfer to use existing data. If required, conduct original studies to estimate non-market values, collect cost data from agencies and workshop economic analysis methods and data requirement with relevant stakeholders;
  3. Conduct economic evaluation (benefit-cost analysis) of several alternatives or options, and;
  4. Engage with end users to understand the feasibility of implementing various options and generate a set of recommendations for the implementing organisations.

Greening the Pipeline (GTP) is a flagship liveability improvement project for Melbourne Water in partnership with Wyndham City Council, City West Water, and Vic Roads.  The project aims to determine how best to improve liveability and environmental outcomes through restoration activity and parkland construction works along a 27km linear section of the heritage listed Main Outfall Sewer. This Case Study will assess the economic, environmental, and social benefits of an on-ground liveability improvement pilot project – Williams Landing.  In this case study we will undertake to provide quantifiable economic justification for investment spending that targets activities that improve liveability.

A Scoping Workshop was conducted to enable all the 'Greening the Pipeline' project team, key stakeholders, and the IRP2 research team to further understand the GTP project and how it fits into the IRP2 project.  This scoping workshop initiated the process for developing a scope for the Greening the Pipeline in Melbourne Case Study.  The workshop agreed on the research questions and clarified the expected outputs.  See Events:  IRP2 Scoping Workshop: Greening the Pipeline in Melbourne.

A Site visit is being organised by Clearwater, Melbourne Water, the CRC for Water Sensitive Cities and The City of Wyndham to visit this exciting multi-functional integrated stormwater improvement project on Thursday 16th Nov 2017 1:30PM - 3:00PM.  This site visit will be an opportunity to check out the Williams Landing pilot site; a showcase for Integrated Water Management which demonstrates the transformation of an unused area into an enticing outdoor community parkland. This site captures and reuses local stormwater for irrigation of green spaces to support active lifestyles and counteract urban heat stress. A short stroll to nearby Wyndham Waters Housing estate will also allow you to view the Water Sensitive Urban Design features that connect with Williams Landing.  During the site visit, you will hear from project partners Melbourne Water and Wyndham City Council. In addition to technical details, you will find out more about stakeholder / community engagement in this first stage pilot project as well as about the CRC for Water Sensitive Cities' research project aiming to quantify the liveability benefits of the project.

For more information and to register for the site visit, please contact:

Wastewater treatment plants (WWTP) are becoming increasingly important to water security and helping to ensure the climate resilience, liveability and sustainability of cities and towns.  In collaboration with the key stakeholders, Water Corporation, City of Nedlands, WESROC group of local governments (Municipalities of Nedlands, Subiaco, Cottesloe, Peppermint Grove, Claremont, Mosman Park), Department of Water, and the WA Planning Commission/Department of Planning, this case study will identify approaches to collaborative planning, evaluating and implementing (including funding) beneficial land uses in the odour buffer of the Subiaco WWTP, also known as the Subiaco Strategic Water Resource Precinct (SWRP). It will provide a model, tools, information and data which can be applied by planners and communities state-wide and nationally.

The case study will consider the following:

  • What are the costs: benefits (market and non-market) of land use options (major land use options are nature conservation, including rehabilitation, sporting and recreation, horticulture and agriculture, commercial and industry).
  • What are the available tools for evaluating land use options / scenarios and what is their level of utility for users.
  • What are the available funding and policy tools (e.g. development /infrastructure contribution schemes, differential rating) to support equitable implementation.

To date, the Water Corporation together with CRC for Water Sensitive Cities, hosted a stakeholder workshop to generate new ideas specific to the Subiaco precinct. Participants included land owners from the buffer zone, members of the Water Corporation and stakeholders from state and local government. These workshop participants were invited to share their perspectives of what success could look like, and to work together to ask: “what could the precinct be, rather than what it is now?”.  A Discussion Paper has been produced to capture these ideas:

Ideas for the Subiaco Strategic Resource Precinct.

This case study will demonstrate how water sensitive urban design can be implemented in practice, in a location with complex drainage interactions, flooding issues, and complex multi stakeholder agency arrangements.  An integrated economic evaluation framework would help identify and quantify: The costs and benefits associated with converting an open drain into a living stream, where the area is flood prone, and; The ongoing benefits, liabilities, and responsibilities of different stakeholders and the revenue needed for the project to be viable from the perspective of each individual stakeholder, and as a whole.

In collaboration with the stakeholders, including Shire of Mundaring, City of Swan, Department of Water, Water Corporation, Department of Parks and Wildlife (Rivers and Estuaries Division) and developers, this case study will consider:

  1. How can a main drain conversion to Public Open Space via a living stream be incorporated into a future residential development.
  2. How best to allocate the cost and liabilities associated with construction where issues of drainage and flood mitigation are a priority, and legacy issues related to nutrient load need to be considered.
  3. What governance arrangements best facilitate the delivery of water sensitive urban design, where there are multiple stakeholders with varying responsibilities - water utility, water regulator, developer, and local government - and where there is the potential to deliver non market benefits through waterway pollution load reductions.

An initial meeting was conducted in March 2017 to enable all the case study's key stakeholders and IRP2 research team to meet, to further understand the details of the case study, and how it fits into the IRP2 project.  This meeting initiated the process for developing a scope and timeline for the Case Study.  A follow up meeting is scheduled for later in the year.  For further information, see event: Scoping workshop: Case Study on converting an open drain into a living stream in Bellevue (WP5.3)

When water authorities are faced with developing the servicing strategies for major urban infill and redevelopments, an opportunity exists to assess options outside of "business as usual".  These options are principally related to exploring new ideas that enable an integrated solution to creating liveable, water sensitive outcomes.  The Arden-Macaulay case study provides an opportunity to explore benefits associated with infill development, which can be transferable to other infill developments.   It will allow each of the proposed research questions be considered in the context of an integrated solution taking into account the whole of the water cycle.  During this case study, we will develop an improved understanding of benefits, beneficiaries and approaches for valuing of benefits related to an infill redevelopment. This requires an evaluation framework that must overlay multiple agencies with multiple objectives and different financing arrangements.

This case study is in partnership with City West Water, Melbourne Water, City of Melbourne, City of Moonee Valley, Victorian Government (via Victorian Planning Authority), and other indirect stakeholders undertaking infill redevelopments.  The benefits of this project will allow all stakeholders to identify the options, identify the benefits, have clarity about their values and be informed to make rational decisions on servicing the area, including funding for service provision.

The case study site is located adjacent to the eastern perimeter of Salisbury City Centre and has been identified as one of the “first stage” of urban rejuvenation in accordance with the City of Salisbury Growth Action Plan. In partnership with City of Salisbury, Renewal SA, Adelaide, Mount Lofty Ranges NRM Board, and Water Sensitive SA, this project aims to assess the benefit-costs associated with optimised green infrastructure and WSUD solutions to deliver stormwater flow, volume and quality improvements, and deliver higher amenity and urban cooling for their community.  The assessment will be across a variety of built form typologies, streetscape and public open space designs.

IRP2 will conduct an economic evaluation of a range of different WSUD solutions at the allotment, street and precinct scales to determine the system and community wide benefits, and compare with the business as usual base case. As part of this, IRP2 will assess the potential of benefit transfer to use existing data to estimate non-market values, as well as collect cost data from agencies, and if required, conduct original studies.

Last updated: 13th Feb 2018