IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v39y2015i3p176-191.html
   My bibliography  Save this article

Identifying and quantifying the indirect benefits of broadband networks for e-government and e-business: A bottom-up approach

Author

Listed:
  • Van der Wee, Marlies
  • Verbrugge, Sofie
  • Sadowski, Bert
  • Driesse, Menno
  • Pickavet, Mario

Abstract

Recent developments of broadband infrastructure deployment and service development have shown the variety of applications it can entail, thereby affecting many, if not all, sectors of the economy and society. Despite an increasing growth of broadband networks combined with a rising number of studies calculating in great detail the direct costs and benefits of these deployments, less attention has been paid to the indirect effects resulting from those emerging applications. As these effects have proven to contribute to economic growth, this paper argues that that they should be taken into account when evaluating a cost-benefit analysis and proposes a model for conceptualization, measurement and quantification. It studies these indirect benefits in the area of e-government (related in particular to savings on travel and waiting time by introducing an e-counter) and e-business (related to reducing traffic jams by allowing employees to work at home). In a bottom up manner, the paper quantifies the indirect benefits in these two sectors by studying two cities: Ghent (Belgium) and Eindhoven (the Netherlands). By quantifying these benefits per actor, the paper shows that the indirect benefits would provide large business and local authorities additional incentives to stimulate investment in broadband networks. The model and results of the paper could be used by decision-makers to improve the business case for new investments in fibre networks and allows evaluating existing and future investment cases.

Suggested Citation

  • Van der Wee, Marlies & Verbrugge, Sofie & Sadowski, Bert & Driesse, Menno & Pickavet, Mario, 2015. "Identifying and quantifying the indirect benefits of broadband networks for e-government and e-business: A bottom-up approach," Telecommunications Policy, Elsevier, vol. 39(3), pages 176-191.
  • Handle: RePEc:eee:telpol:v:39:y:2015:i:3:p:176-191
    DOI: 10.1016/j.telpol.2013.12.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030859611300205X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.telpol.2013.12.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January.
    2. John A. Norton & Frank M. Bass, 1987. "A Diffusion Theory Model of Adoption and Substitution for Successive Generations of High-Technology Products," Management Science, INFORMS, vol. 33(9), pages 1069-1086, September.
    3. Laffont, Jean-Jacques & Tirole, Jean, 1994. "Access pricing and competition," European Economic Review, Elsevier, vol. 38(9), pages 1673-1710, December.
    4. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    5. Sébastien Damart & Bernard Roy, 2009. "The uses of cost-benefit analysis in public transportation decision-making in France," Post-Print hal-00414462, HAL.
    6. Robert J. Gordon, 2000. "Does the "New Economy" Measure Up to the Great Inventions of the Past?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 49-74, Fall.
    7. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 339-376.
    8. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    9. Jack E. Triplett, 1999. "The Solow productivity paradox: what do computers do to productivity?," Canadian Journal of Economics, Canadian Economics Association, vol. 32(2), pages 309-334, April.
    10. Andrés, Luis & Cuberes, David & Diouf, Mame & Serebrisky, Tomás, 0. "The diffusion of the Internet: A cross-country analysis," Telecommunications Policy, Elsevier, vol. 34(5-6), pages 323-340, June.
    11. Elizabeth Mack & Alessandra Faggian, 2013. "Productivity and Broadband," International Regional Science Review, , vol. 36(3), pages 392-423, July.
    12. Oecd, 2008. "Developments in Fibre Technologies and Investment," OECD Digital Economy Papers 142, OECD Publishing.
    13. Elizabeth A. Mack & Luc Anselin & Tony H. Grubesic, 2011. "The importance of broadband provision to knowledge intensive firm location," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(1), pages 17-35, March.
    14. Forman, Chris & Goldfarb, Avi & Greenstein, Shane, 2005. "How did location affect adoption of the commercial Internet? Global village vs. urban leadership," Journal of Urban Economics, Elsevier, vol. 58(3), pages 389-420, November.
    15. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    16. Verbrugge, Sofie & Van der Wee, Marlies & Fernandez-Gallardo, Maria & Dobrajs, Kristaps & Pickavet, Mario, 2012. "Some insights in regulation and potential profitability off passive fiber infrastructure in Europe," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72530, International Telecommunications Society (ITS).
    17. Andrew Barnard, 2009. "The effects of taxes and benefits on household income, 2007/08," Economic & Labour Market Review, Palgrave Macmillan;Office for National Statistics, vol. 3(8), pages 56-66, August.
    18. Damart, Sébastien & Roy, Bernard, 2009. "The uses of cost-benefit analysis in public transportation decision-making in France," Transport Policy, Elsevier, vol. 16(4), pages 200-212, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Feijóo, Claudio & Ramos, Sergio & Armuña, Cristina & Arenal, Alberto & Gómez-Barroso, José-Luis, 2018. "A study on the deployment of high-speed broadband networks in NUTS3 regions within the framework of digital agenda for Europe," Telecommunications Policy, Elsevier, vol. 42(9), pages 682-699.
    2. Henriksen, Alexandre Lauri & Zoghbi, Ana Carolina & Tannuri-Pianto, Maria & Terra, Rafael, 2022. "Education outcomes of broadband expansion in Brazilian municipalities," Information Economics and Policy, Elsevier, vol. 60(C).
    3. Giovanni Baldi & Antonietta Megaro & Luca Carrubbo, 2022. "Small-Town Citizens’ Technology Acceptance of Smart and Sustainable City Development," Sustainability, MDPI, vol. 15(1), pages 1-18, December.
    4. Hoeschele, Thomas & Dietzel, Christoph & Kopp, Daniel & Fitzek, Frank H.P. & Reisslein, Martin, 2021. "Importance of Internet Exchange Point (IXP) infrastructure for 5G: Estimating the impact of 5G use cases," Telecommunications Policy, Elsevier, vol. 45(3).
    5. Kazekami, Sachiko, 2020. "Mechanisms to improve labor productivity by performing telework," Telecommunications Policy, Elsevier, vol. 44(2).
    6. Saman Sattar Saleh & Muesser Nat & Musbah Aqel, 2022. "Sustainable Adoption of E-Learning from the TAM Perspective," Sustainability, MDPI, vol. 14(6), pages 1-19, March.
    7. Fawad Ahmed & Yuan Jian Qin & Luis Martínez, 2019. "Sustainable Change Management through Employee Readiness: Decision Support System Adoption in Technology-Intensive British E-Businesses," Sustainability, MDPI, vol. 11(11), pages 1-28, May.
    8. Sahebali, M.W.W. & Sadowski, Bert M. & Nomaler, O. & Brennenraedts, R., 2021. "Rolling out of fibre optic networks in intermediate versus urban areas: An exploratory spatial analysis in the Netherlands," Telecommunications Policy, Elsevier, vol. 45(5).
    9. Adriana Ana Maria Davidescu & Simona-Andreea Apostu & Vasile Alecsandru Strat & Adrian Istrate Scradeanu & Ion Daniel Zgura & Maria Gabriela Horga, 2021. "The Impact of Teleworking on the Romanians Employees’ Job Satisfaction. An Empirical Evidence Based on Multiple Correspondence Analysis (MCA) and Logistic Regression," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(58), pages 637-637, August.
    10. Tekic, Zeljko & Tekic, Anja, 2024. "Complex patterns of ICTs' effect on sustainable development at the national level: The triple bottom line perspective," Technological Forecasting and Social Change, Elsevier, vol. 198(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bashir, Sadaf & Sadowski, B. M., 2014. "General purpose technologies: A survey, a critique and future research directions," 25th European Regional ITS Conference, Brussels 2014 101443, International Telecommunications Society (ITS).
    2. Pierre-Alain Muet, 2006. "Impacts économiques de la révolution numérique," Revue économique, Presses de Sciences-Po, vol. 57(3), pages 347-375.
    3. Greenstein, Shane, 2010. "Innovative Conduct in Computing and Internet Markets," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 477-537, Elsevier.
    4. Lach, Saul & Trajtenberg, Manuel & Shiff, Gil, 2008. "Together but Apart: ICT and Productivity Growth in Israel," CEPR Discussion Papers 6732, C.E.P.R. Discussion Papers.
    5. Liao, Hailin & Wang, Bin & Li, Baibing & Weyman-Jones, Tom, 2016. "ICT as a general-purpose technology: The productivity of ICT in the United States revisited," Information Economics and Policy, Elsevier, vol. 36(C), pages 10-25.
    6. Gu, Wulong Gera, Surendra, 2004. "The Effect of Organizational Innovation and Information Technology on Firm Performance," The Canadian Economy in Transition 2004007e, Statistics Canada, Economic Analysis Division.
    7. Erik Brynjolfsson & Lorin M. Hitt, 2003. "Computing Productivity: Firm-Level Evidence," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 793-808, November.
    8. Philip Chen & Edward J Oughton & Pete Tyler & Mo Jia & Jakub Zagdanski, 2020. "Evaluating the impact of next generation broadband on local business creation," Papers 2010.14113, arXiv.org.
    9. Federico Biagi, 2013. "ICT and Productivity: A Review of the Literature," JRC Working Papers on Digital Economy 2013-09, Joint Research Centre.
    10. Meijers, Huub, 2007. "ICT Externalities: Evidence from cross country data," MERIT Working Papers 2007-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. Nadine Fabritz, 2015. "Investment in ICT: Determinants and Economic Implications," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 60.
    12. Aboal D. & Tacsir E., 2015. "Innovation and productivity in services and manufacturing : The role of ICT investment," MERIT Working Papers 2015-012, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Crafts, Nicholas, 2002. "The Solow Productivity Paradox in Historical Perspective," CEPR Discussion Papers 3142, C.E.P.R. Discussion Papers.
    14. Nina Czernich, 2011. "The emergence of broadband internet and consequences for economic and social development," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 37.
    15. Gunnarsson, Gudmundur & Mellander, Erik & Savvidou, Eleni, 2004. "Human capital is the key to the IT productivity paradox," Working Paper Series 2004:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    16. Stefan Schweikl & Robert Obermaier, 2020. "Lessons from three decades of IT productivity research: towards a better understanding of IT-induced productivity effects," Management Review Quarterly, Springer, vol. 70(4), pages 461-507, November.
    17. repec:pri:cepsud:113krusell is not listed on IDEAS
    18. Sang-Yong Tom Lee & Xiao Jia Guo, 2004. "Information and Communications Technology (ICT) and Spillover: A Panel Analysis," Econometric Society 2004 Far Eastern Meetings 722, Econometric Society.
    19. Diego Aboal & Ezequiel Tacsir, 2018. "Innovation and productivity in services and manufacturing: the role of ICT," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(2), pages 221-241.
    20. Mellander, Erik & Savvidiou, Eleni & Gunnarsson, Gudmundur, 2001. "Is Human Capital the Key to the IT Productivity Paradox?," Working Paper Series 551, Research Institute of Industrial Economics.
    21. Hornstein, Andreas & Krusell, Per & Violante, Giovanni L., 2005. "The Effects of Technical Change on Labor Market Inequalities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 20, pages 1275-1370, Elsevier.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:39:y:2015:i:3:p:176-191. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.