Protracted Construction Schedule

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USACE2

• February 18, 2011 22:25

I'm currently working on a flood risk reduction project that has a projected construction schedule of 60 years. I have cost estimates for each year. Since the cost per year extend so far into the future, I would like to take the present value of the future costs by sector and then enter these present value costs as impacts in IMPLAN. Is this an appropriate approach for dealing with the protracted construction schedule? Thanks a lot

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  jenny

  • February 18, 2011 23:34

  This would be a reasonable alternative to running 60 separate impacts, each with a different Event Year specified. However, please keep in mind that I-O models are static. So your analysis, as you describe it, would be making the assumption that the underlying structure of the regional economy would look exactly the same in 60 years as it does now. In other words, you would be looking at the impact of future dollars on today's economy.

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  DougO

  • February 22, 2011 21:59

  You will also need to know if the 2070 spending data you have is priced in 2070 dollars or 2011 dollars. Whatever, the year of dollars you will need to specify that year so the software can correctly convert it to 2009 dollars (or whatever year data you have) before applying it to the multipliers.

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