Public investments in infrastructure are some of the clearest ways communities demonstrate their commitment to the future. These projects are measured not only by their ability to stay on schedule and within budget, but also by how they enhance the everyday lives of the communities that rely on them.
STV’s infrastructure economics and grants advisory team is at the forefront of redefining how success is measured in infrastructure programs. Their value economics framework builds on the proven foundation of value engineering, while expanding the lens to capture the broader economic, social and environmental benefits that projects generate for years to come.
In this roundtable discussion, Economist Hana Shuck and Vice President and Director of Infrastructure Economics and Grants Advisory Patricia Macchi, highlight how their value economics approach contributes to stronger, more impactful investments.
How does “value economics” complement “value engineering”?
Patricia Macchi: Value economics asks, “What is the economic, social and environmental return that this project element creates for the community and the region, both now and decades into the future?” This includes short-term impacts such as comfort, usability, safety and immediate operational or environmental benefits, as well as long-term impacts like ridership growth, health improvements, cost savings, resilience, congestion reduction and lifecycle value. In doing so, it complements the value engineering question: “How can we deliver the same function at the lowest cost?” by encouraging a second look at features that may appear nonessential upfront, but in fact generate lasting public benefits.
Hana Shuck: We know that value engineering is a vital tool for transportation and infrastructure projects. It helps agencies control budgets by finding cost-effective ways to meet core performance needs. Building on the strength of value engineering by expanding the focus beyond cost, allows agencies to capture broader economic and societal benefits, ultimately unlocking the full transformative potential of infrastructure.
Can you give examples of how this plays out on a real project?
Hana Shuck: Let’s look at a transit station. Value economics can assess many design decisions from seating, bike racks, public art or the roof design. Extra seating and weather protection improve the commuter experience and can even boost ridership. Bike racks and e-bike chargers support micromobility, which can result in reduced traffic or better public health outcomes. Even public art adds value by strengthening neighborhood identity. And while a green roof may cost more upfront, it reduces heat, manages stormwater and saves on maintenance in the long run.
So, value economics is really about capturing long-term benefits for both the system and the community.
Patricia Macchi: The same can apply to building design and construction. Flood-resistant finishes and seismic isolators are costly to install but can prevent major repair bills after storms. Passive cooling lowers energy demand while improving comfort. Backup water storage keeps critical operations running.
Why is embedding this perspective so important?
Patricia Macchi: Value economics broadens the lens of infrastructure decision-making for our clients, teaming partners and communities. Quantifying benefits gives decision-makers a fuller understanding of what a project truly delivers. It also protects long-term value by preserving features that may seem non-essential initially but provide significant public benefits over a project’s lifecycle.
At the same time, it aligns investments with community priorities, so our infrastructure reflects not only efficiency but also livability, sustainability and regional growth. By demonstrating both tangible and intangible returns, value economics strengthens the case for investment, builds public support and can support the decision to incorporate certain design choices. Integrating value economics at key moments allows decision-makers to consider the full range of options and their broader impact.
Value economics is really about capturing long-term benefits for both the system and the community.
How does STV’s infrastructure economics team bring unique value to this process?
Hana Shuck: Our group combines advanced economic modeling with deep infrastructure expertise. We perform benefit-cost analyses, life-cycle cost modeling, funding assessments and input-output modeling to show how a project can drive jobs and regional GDP. We also work side by side with planners, engineers and architects, so our recommendations are not only economically sound, but also informed by technical and operational feasibility. That blend of rigorous economics and hands-on infrastructure delivery sets STV apart in the industry.
What does this mean for your project seeking funding or grants?
Patricia Macchi: For project owners and stakeholders seeking funding or grants, applying value economics can be a game-changer. By demonstrating the full range of benefits their project can deliver (including health improvements, resilience, congestion reduction, environmental gains and long-term community impact), their projects go beyond construction or operational costs. This clear articulation of both tangible and intangible returns makes proposals more compelling to funders, helping agencies justify investments, secure competitive grants and build stakeholder support. In essence, value economics shows the lasting value a project creates, which can significantly improve the likelihood of funding approval.
