Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/88492
Authors: 
Gruber, H.
Hätönen, J.
Koutroumpis, P.
Year of Publication: 
2013
Series/Report no.: 
24th European Regional Conference of the International Telecommunication Society, Florence, Italy, 20-23 October 2013
Abstract: 
This paper evaluates the net benefits of the implementation of the broadband infrastructure deployment targets by 2020 as entailed by the Digital Agenda for Europe Initiative set forth by the European Commission. We estimate the returns from broadband infrastructure for the period 2005-2011, differentiating the impact of broadband by levels of adoption and speed while accounting for reverse causality and extensive heterogeneity. We find that in the base case scenario the overall benefits outweigh the costs by 32% for the entire European Union. We further extrapolate the returns by country under different scenarios of implementation. In most cases the benefits are substantially well above the costs. The findings lead to policy recommendations related to the role of public support for the generalized build out of broadband infrastructure.
Subjects: 
broadband networks
economic impact
Digital Agenda
JEL: 
O33
O38
O52
Document Type: 
Conference Paper

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