The course deals with the evaluation methodologies of urban transformations and policies. The point of view will be that of both the planner (collective benefits  of  large public projects of urban transformation) and the private developer (profitability of large real estate projects). It tries to give an answer to questions like: which is the logic governing the structure and evolution of land values in the city? Which techniques may help assessing the social value and the private profitability of big projects of urban transformation?

The main goal is to introduce the student to the different existing logics and approaches, applied to a variety of empirical case studies. The theme of the nature and evolution of land rent in theoretical terms will have a central role.

The course is divided in three parts:

Part 1: theory

In this part, the formation of a land rent is considered, linking it to the main principles of urban economics:

-          the city as a public and combined public/private good;

-          agglomeration, accessibility and the theory of urban land rent: differential rent and absolute rent

-       public goods and urban externalities

-          welfare economics: individual and social preferences, assessment of public policies

Part 2: assessment methodologies

In this part, different methodologies for the economic assessment of big transformation projects will be presented; first of all in terms of social costs and benefits (public assessment):

• Cost-benefit analysis.
• Multicriteria analysis,
• Hedonic prices, contingency evaluation, conjoint analysis
• Strategic Impact Assessment and Territorial Impact Assessment

Secondly, methodologies for the financial evaluation of real estate projects will be presented (private assessment): the “market” method, the cost method, the economic (internal rate of return) and the financial method (discounted cash flow).

Part 3: case studies

Three case studies will be presented in particular:

• The economic evaluation of a large urban project through the assessment of prospective change in real estate values;
• The reconvertion of an industrial derelict area,
• Territorial impact assessment of Trans European Networks programme

Paper from "Evaluation and program planning", 32, 342-350.

Chapter of the volume: Baioni M., Caudo G. (a cura di), La costruzione della città pubblica, Firenze, Alinea. English versions of the Italian titles will be indicated and distributed during the course.

Chapter of the volume: Reggiani A., Nijkamp P., Spatial Dynamics , Networks and Modeling, E. Elgar, Cheltenham.

English versions of the Italian titles will be indicated and distributed during the course.

Lecture notes posted on the class website.