engleski

Economic analysis of Brownfield investments in cultural and creative industries

Economic analysis as an integral part of cost- benefit analysis (CBA) has an increasing importance in assessing major public investment projects. This, among other, relates to reconstruction and revitalization projects, insufficiently exploited, abandoned or destroyed complexes that once had, often industrial purpose and which are today a potential for development of new economic and social activities (brownfield investments). These projects are precisely those where, due to the high cost of renewal, revitalization and maintenance, with the questionable level of operating revenues, need assessment of socio- economic benefits to prove their feasibility. This analysis is today mandatory when applying for EU funding. The importance of EU funds in financing public brownfield investments that are often combined with activities in cultural and creative industries (CCI) and tourisms already proven. Since these industries are rapidly developing, employ a large number, primarily young, highly educated people and can be combined with the activities of rising the visiting attractiveness of the location, there are number indicators that can be used to calculate the economic value of the project. The aim of this paper is to analyse the role and significance of economic analysis as part of the cost-benefit analysis in funding decision- making, especially in assessing the justification of financing the major public investment projects. For that reason the paper presents the case-study of a public brownfield investment that was evaluated by using the selected indicators of financial and economic analysis giving the comparison of their results and impact on the decision-making on investments with large socio-economic benefits.

brownfield investments ; economic analysis ; financing ; cultural and creative industries

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