ET2050 The SASI Model - Klaus Spiekermann and Michael Wegener ET2050 Project Group Meeting, Barcelona, 19-21 October 2011

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ET2050 The SASI Model - Klaus Spiekermann and Michael Wegener ET2050 Project Group Meeting, Barcelona, 19-21 October 2011
ET2050
               The SASI Model

        Klaus Spiekermann and Michael Wegener

ET2050 Project Group Meeting, Barcelona, 19-21 October 2011
The SASI Model

2
The SASI model

    There are three methods to model the impacts of
    policies on regional economic development:
    • Multiplier effects of infrastructure invest-
      ments (Aschauer, 1993)
    • Regional production functions incorporating
      infrastructure as production factor
                                                      ASI
      (Jochimsen, 1966; Biehl, 1986, 1991)          S

    • Interregional trade flows as a function of
      interregional transport costs (Peschel, 1981;
      Bröcker, 1995) and input-output linkages
      (Echenique, 1990) and economies of scale
      (Krugman, Venables,1995)

3
The SASI model

    The SASI model is a recursive-dynamic simulation
    model of socio-economic development of regions in
    Europe under assumptions about
    • European economic development and external
      net migration
    • European/national regional subsidies (EFRE,
      CAP) and infrastructure policies (TEN-T)
    The SASI model differs from other regional economic
    models by modelling not only production (the
    demand side of regional labour markets) but also
    population (the supply side of labour markets).

4
Regional production function

    In state-of-the-art models of regional development
    based on production functions the classic production
    factors land, labour and capital are replaced by
    location factors, such as:
    • Economic structure
    • Productivity
    • Accessibility
    • Labour supply
    • Services
    • Settlement structure
    • Research and development
    • Education
    • Quality of life

5
Regional production function

    Extended production function:
                              Land         Accessibility

                              α       β    γ   δ
      Production        Qi = Li Ri K i Ai ...               Others

                        Labour            Capital

    where Ai is potential accessibility:
                          Destinations              Travel cost between
                          in region j               regions i and j

                         Ai = ∑ W j exp ( − β c ij )
        Accessibility
        of region i
                                  j
6
SASI
    model                         Transport
                                    policy

             Production                        Migration
                          Accessibility
              function                         function

               GDP          Income            Population

            Employment    Unemploy-            Labour
                            ment                force

7
Regions

     SASI
     model

8
TEN-T priority
projects
TEN and TINA
projects
Multimodal
     accessibility
     1981
     1986
     1996
     1991
     2001
     2006
     2011
     2016
     2021
     2026
     2031

11
The AlpenCors Project:
     a Regional Application

12
The AlpenCorS project (2004-2005)

     The Interreg III B programme "Alpine Space"
     (2000-2006) aimed at developing a concept for
     economic and spatial development in the pan-
     European Corridor V between France, Italy,
     Slovenia and Austria.
     The project AlpenCorS ("Alpen Corridor South")
     focused on the central segment of the corridors
     south of the Alps. The SASI model was to assess
     the effects of the intersection with Corridor I,
     the Brenner Corridor.

13
GDP per capita (EU27+2 = 100)
     Scenario 000
     2021
     Reference Scenario
                   Strasbourg •
                                                                                        Wien •
                                                    München •

                                      • Zürich

                                                           • Bolzano

                                                          • Trento               • Ljubljana
       • Lyon

                                         • Milano                    • Venezia
                           • Torino

14
Accessibility road/rail/air travel
     Scenario 000
              AS1 v. 000
     2021
     Reference
     Brenner tunnel
                Scenario
                     effect
                     Strasbourg ••
                     Strasbourg
                                                                                               Wien ••
                                                                                               Wien
                                                        München ••
                                                        München

                                         •• Zürich
                                            Zürich

                                                                •• Bolzano
                                                                   Bolzano

                                                              •• Trento
                                                                 Trento                •• Ljubljana
                                                                                          Ljubljana
       • Lyon

                                            •• Milano
                                               Milano                     •• Venezia
                                                                             Venezia
                             •• Torino
                                Torino

15
GDP  per capita
     Accessibility   (EU27+2
                   road freight= 100)
     Scenario AS1 v. 000
     2021
     Brenner tunnel effect
                    Strasbourg •
                                                                                         Wien •
                                                     München •

                                       • Zürich

                                                            • Bolzano

                                                           • Trento               • Ljubljana
       • Lyon

                                          • Milano                    • Venezia
                            • Torino

16
The STEPs Project:
     a European Application

17
The STEPs project (2004-2006)

     The EU 6th RTD Framework project STEPs
     (Scenarios for the Transport System and Energy
     Supply and their Potential Effects) developed and
     assessed possible scenarios for the EU transport
     system and energy supply of the future.
     In the project five urban/regional models were
     applied to forecast the long-term economic, social
     and environmental impacts of different scenarios of
     fuel price increases and different combinations of
     infrastructure, technology and demand
     regulation policies.

18
STEPs Scenarios

     The scenarios combined three rates of energy price
     increases with three sets of policies:
                                               2030            2030         2030
                                             Fuel
                                            1.60 €* price3.33
                                                          increase
                                                              €*   6.80 €*
                                      +1% p.a. +4% p.a. +7% p.a.
     Do-nothing                          A-1             B-1          C-1
     Business as usual                    A0              B0          C0
     Infrastructure & technology          A1              B1          C1
                                               2030            2030         2030
     Demand regulation                    A23.35 €* B26.95 €* C2 23.25 €*
     All policies                         A3              B3          C3
                           * € of 2008 per litre      A-1 Reference Scenario
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European policy scenarios

     A1-C1 Infrastructure and technology
           - Petrol/Diesel per km (down to -4 % p.a.)
           - Alternative vehicles/fuels (up to 33 %)
           - European rail speed (up to +2 % p.a.)
           - Regional rail speed (up to +1.7 % p.a.)
           - Rail freight speed (up to +2 % p.a.)
     A2-C2 Demand regulation
           - Fuel tax (up to +5 % p.a.)
           - Kerosene tax (up to 200 % of petrol tax)
           - Road pricing (up to +10 % p.a.)
           - Public transport fares (down to -1.7 % p.a.)
           - Car/lorry cost per km (up to +3 % p.a.)
           - Rail freight cost (down to -1.5 % p.a.)
     A3-C3 All policies
20
Accessibility road/rail/air (million)

21
Scenario A-1
             A-1
     Accessibility
     road/rail/air travel
     (million)
     in year 2031
             180 - 200
             160 - 180
             140 - 160
             120 - 140
             100 - 120
              80 - 100
              60- 80
              40 - 60
              20 - 40
               0 - 20

22
Scenario A1
     Accessibility
     road/rail/air travel
     Difference from
     ScenarioA-1
     2031 (%)
              40 -    50
              30 -    40
              20 -    30
              10 -    20
               0-     10
             -10 -     0
             -20 -   -10
             -30 -   -20
             -40 -   -30
             -50 -   -40

23
Scenario B1
     Accessibility
     road/rail/air travel
     Difference from
     ScenarioA-1
     2031 (%)
              40 -    50
              30 -    40
              20 -    30
              10 -    20
               0-     10
             -10 -     0
             -20 -   -10
             -30 -   -20
             -40 -   -30
             -50 -   -40

24
Scenario C1
     Accessibility
     road/rail/air travel
     Difference from
     ScenarioA-1
     2031 (%)
              40 -    50
              30 -    40
              20 -    30
              10 -    20
               0-     10
             -10 -     0
             -20 -   -10
             -30 -   -20
             -40 -   -30
             -50 -   -40

25
Scenario A-1
     GDP per capita
     2031 (€ of 2005)
             54 -   60
             48 -   54
             42 -   48
             36 -   42
             30 -   36
             24 -   30
             18-    24
             12 -   18
              6-    12
              0-     6

26
Scenario A1
     GDP per capita
     Difference from
     Scenario A-1
     2031 (%)
              8-    10
              6-      8
              4-      6
              2-      4
              0-      2
             -2 -     0
             -4 -    -2
             -6 -    -4
             -8 -    -6
            -10 -    -8

27
Scenario B1
     GDP per capita
     Difference from
     Scenario A-1
     2031 (%)
              8-    10
              6-      8
              4-      6
              2-      4
              0-      2
             -2 -     0
             -4 -    -2
             -6 -    -4
             -8 -    -6
            -10 -    -8

28
Scenario C1
     GDP per capita
     Difference from
     Scenario A-1
     2031 (%)
              8-    10
              6-      8
              4-      6
              2-      4
              0-      2
             -2 -     0
             -4 -    -2
             -6 -    -4
             -8 -    -6
            -10 -    -8

29
The SASI Model in ET2050

30
Ongoing model developments

     • Extension of forecasting horizon from 2030 to
       2050
     • Conversion of the region system to the 2006
       NUTS-3 classification
     • Higher spatial resolution in Croatia and other
       Western Balkan countries
     • Simple model of long-distance passenger and
       freight transport
     • Calculation of environmental indicators as
       energy consumption and CO2 emissions of
       transport

31
Questions answered

     How will European and national
     • subsidies (EFRE, CAP)
     • infrastructure investments (TEN-T)
     • rising energy costs
     affect
     • regional economic development,
     • regional population/migration,
     • interregional travel and goods flows,
     • energy consumption/CO2 emissions,
     • territorial cohesion and polycentricity?

32
Baseline Scenario

     The Baseline Scenario for 2030 and 2050 will be
     based on BAU assumptions about
     • European economic development and EU net
       migration,
     • European/national regional subsidies and
       infrastructure policies
     and will produce forecasts of:
     • regional economic development,
     • regional population/migration,
     • interregional travel and goods flows,
     • energy consumption/CO2 emissions,
     • territorial cohesion and polycentricity

33
Scenario "Europe of Cities"

     The exploratory scenario "Europe of Cities" will
     differ from the baseline scenario by assumptions
     about European/national regional subsidies and
     infrastructure policies that support the concen-
     tration of economic activities and population in the
     largest metropolitan areas and will forecast:
     • European economic development,
     • regional economic development,
     • regional population/migration,
     • interregional travel and goods flows,
     • energy consumption/CO2 emissions,
     • territorial cohesion and polycentricity

34
Scenario "Europe of Regions"

     The exploratory scenario "Europe of Regions" will
     differ from the baseline scenario by assumptions
     about European/national regional subsidies and
     infrastructure policies that support the concen-
     tration of economic activities and population in the
     small towns and rural regions and will forecast:
     • European economic development,
     • regional economic development,
     • regional population/migration,
     • interregional travel and goods flows,
     • energy consumption/CO2 emissions,
     • territorial cohesion and polycentricity

35
Scenario "Europe of Flows"

     The exploratory scenario "Europe of Flows" will
     differ from the baseline scenario by assumptions
     about European/national regional subsidies and
     infrastructure policies that support the concen-
     tration of economic activities and population in the
     major transport corridors and will forecast:
     • European economic development,
     • regional economic development,
     • regional population/migration,
     • interregional travel and goods flows,
     • energy consumption/CO2 emissions,
     • territorial cohesion and polycentricity

36
Results (1)

     • Population indicators: Population by age, sex,
       nationality, labour force participation, education,
       net migration and net commuting by NUTS-3 region
       per year
     • Economic indicators: GDP by industry, by worker,
       by capita, employment by industry and
       unemploy-ment by NUTS-3 region per year
     • Accessibility indicators: Accessibility by mode
       (travel/goods) by NUTS-3 region per year

37
Results (2)

     • Transport indicators: Travel and goods flows
       between NUTS-3 regions by mode per year.
     • Environmental indictors: Energy consumption
       and CO2 emissions of transport between NUTS-3
       region per year.
     • Cohesion indicators: Cohesion and polycentricity
       indicators of accessibility and GDP per capita of
       NUTS-3 regions per year

38
Typical graphical output

     • Time-series diagrams
       - by country or macro region
       - by scenario
     • Maps
       - indicators by NUTS-3 region by year
       - indicator differences between scenarios by
         NUTS-3 region per year
     • 3D surfaces
       - indicators by NUTS-3 region per year
       - differences between scenarios by NUTS-3
         region per year

39
More information

     Wegener, M., Bökemann, D. (1998): SASI Model: Model
     Structure. Berichte aus dem Institut für Raumplanung 40.
     Dortmund: Institute of Spatial Planning, University of
     Dortmund. http://www.raumplanung.uni-dortmund.de/irpud/
     fileadmin/irpud/content/documents/publications/ber40.pdf.
     Wegener, M. (2008): SASI Model Description. Working
     Paper 08/01. Dortmund: Spiekermann & Wegener Stadt-
     und Regionalforschung. http://www.spiekermann-wegener.
     de/mod/pdf/AP_0801.pdf.
     Fiorello, D., Huismans, G., López, E., Marques, C., Steen-
     berghen, T., Wegener, M., Zografos, G. (2006): Transport
     Strategies under the Scarcity of Energy Supply. Final
     Report of the EU project STEPs – Scenarios for the Transport
     and Energy Supply and their Potential Effects, edited by A.
     Monzon and A. Nuijten. Den Haag: Buck Consultants
     International. http://www.steps-eu.com/reports.htm.

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