5.4.3 Economy

The Economy Criterion has three sub-criteria, which together should summarise the full extent of economic impacts resulting from an option.  These include:

• Transport Economic Efficiency (TEE), covers the benefits ordinarily captured by standard cost-benefit analysis - the transport impacts of an option; 
• Wider Economic Benefits (WEBs) relate to the notion of potential transport impacts on agglomeration and the relationship between agglomeration and productivity.  This is not included in initial Part 1 Appraisal and practitioners should note that it is likely that appraisal of this sub-criterion should only be completed in Part 2 Appraisal; and
• Economic Activity and Location Impacts (EALIs), allows the impact of an option to be expressed in terms of their net effects on the local and/or national economy.

In completing the Part 1 AST, even where economic development impacts are not expected at the outset, or not thought to be central to the case for an option, the potential for such impacts should be considered. At this stage, gross impacts should be considered - that is, the impacts on different sectors of economic activity, on different areas within a region or sub region, and on different groups in society.

This is especially important where a regeneration or development area might be affected. As discussed later, it may well be the case that gross impacts will cancel each other out, but in the interests of transparency and to ensure that impacts on particular areas or social groups are not omitted, it is desirable to consider the (gross) components which constitute to the overall net impact.

Where no gross EALIs are expected following an initial appraisal, there should be a statement to this effect, together with the reasons for this judgement. At the option development stage, this should be indicated in the Part 1 AST in the section on impacts on the local economy. Transport Scotland reserves the right to request that such impacts are investigated, even if the practitioner does not expect any to arise.

In Part 1, there is a scoping table which involves:

• Segmentation of the economic context by economic sectors or drivers of economic development; and
• Analysis of potential local and national level impacts in each sector.

In Part 1 only qualitative/indicative information is required. What is important in Part 1 is to ensure:

• That both positive and negative impacts are scoped; and
• That areas and people/social groups likely to be affected are identified, with indicative levels of impacts.

A key issue at this stage in the transport appraisal process is to determine the scope of the TEE appraisal.

At the Part 1 Appraisal stage, a qualitative assessment should be completed using the seven point scale assessment, considering the relative size and scale of its impacts.  The supporting information could include:

• How will the option affect traffic volumes, journey times, or the reliability of travel times?
• Will there be gainers and losers, and if so what are the impacts on users and operators of different transport modes and in different areas? and
• How might the option help attract new jobs, help existing businesses, open up appropriate land for development?