Megaprojects with Marion Terrill from Grattan Institute
Megaprojects such as the Channel Tunnel, Boston’s Big Dig, and a range of new transport projects in Australia have experienced big cost blow outs. Megaprojects also tend to underperform in terms of benefits they deliver. This episode explores the economics of megaprojects.
Economics Explored · Marion Terrill, Gene Tunny
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Show Notes
Multi-billion-dollar Megaprojects like Boston’s Big Dig and Brisbane’s Cross River Rail are more at risk of cost blowouts and failing to generate the benefits they expect than smaller infrastructure projects. Marion Terrill, Transport & Cities Program Director at the Grattan Institute, explains why in a conversation with Economics Explored host Gene Tunny. Marion has recently co-authored a Grattan Institute report The rise of megaprojects: counting the costs.
Issues of discussion include:
- Why megaproject costs blow out (5:20)
- Optimism bias (12:00)
- What Nassim Nicholas Taleb wrote about megaprojects in Antifragile (17:15)
- How we can improve infrastructure project selection and management (22:50)