Economic and Fiscal Impact Studies

BSI is the source for supply chain economics, having pioneered many of the analytical and economic methods in the early 2000s. We have used our actual experience with sourcing and supply chain optimization projects to develop accurate coefficients and multipliers for modeling the value chain impacts of investment, sales, and pricing scenarios.

We have also developed supply chain taxonomies that have been used in policy-making to quantify the impact of policy scenarios on different types of companies. Our expert policy analysis team uses these constructs to provide sound and compelling policy advice to governments worldwide.

BSI leverages its proprietary economic models and frameworks to advise Ministries of Finance, Ministries of Economy, Ministries of Industry, and other governmental agencies in the formulation of national and sectoral tax, subsidy, and investment promotion policies. Our broad experience across all aspects of industrial value chains, combined with our strength in economic analysis, provides clients with robust and trustworthy roadmaps for growth.

Examples of our Economic and Fiscal Studies projects are:

  • Carbon Tax Impact Studies
  • Greenhouse Gas (GHG) Emissions Policy Studies
  • Industrial Air Pollution Standards
  • Low-Carbon Fuel Standards
  • Emissions Trading Schemes (ETS)
  • Power Generation Efficiency
  • Renewable Energy Tax Credit Analysis
  • Analysis of Tradeable Energy Certificates

BELOW ARE SOME EXAMPLES OF BSI’S SUPPLY CHAIN ECONOMIC IMPACT STUDIES.

Oil & Gas Industry Investment Policy.

For the highly respected US Oil & Gas Journal, the China Sourcing Summit On Petroleum & Chemical Equipment, and industry organizations worldwide, BSI has modeled the oil & gas industry to ascertain and forecast the effect of oil price changes on supply chain costs, using a systems dynamics model and 40 years of actual data. The results have been used to make long-term decisions on employment, investment, and contracting.

US Government Research Program.
As part of a study designed to establish a methodology for quantifying the benefits of large-scale freight infrastructure investments, Boston Strategies International developed objective, quantifiable methodologies to quantify national vs. local/regional benefits.  The methodology highlighted allowed industry specificity of the benefits, and allowed for comparisons across modes and types of projects. While traditional transportation and economic impact modeling had addressed the impacts on industry somewhat irregularly, with few studies addressing exactly how businesses benefit from improved transportation, this document explained and quantified the industry impacts from transportation improvements with emphasis on supply chain effects.  The supply chain effects of transportation improvements are a critical element of that improvement and this analysis provides needed information on the logistics (aka, second order effects) benefits to industry. Integrated leading-edge supply chain thinking with transportation planning methods to determine the supply chain impact of various types of transportation investments.  The study quantified key baselines and variables by industry to facilitate its use in specific project evaluations.

US Department of Transportation. 

Analyzed competitiveness and efficiency of rail, truck, and ocean freight in the US. Identified bottlenecks. Developed new frameworks for quantifying the value of SCM using economic multipliers. Contributed supply chain analyses for a series of reports that summarize economic growth trends and structural changes in the economy and logistics that will drive and shape the demand for freight over the next 20 years.

US Chamber of Commerce. 

For the US Chamber of Commerce, whose members are some of the largest companies in the US, developed international transportation comparisons that explored the link between transportation infrastructure capacity and long-term economic productivity, growth and competitiveness. Examined linkages between congestion, capacity, logistics cost, and logistics competitiveness in countries worldwide.  We further interviewed dozens of shippers and selected carriers to formulate conclusions and recommendations. The documented findings were included in a widely publicized report that spells out a policy agenda.

US National Cooperative Research Program (NCHRP). 

For the National Academy of Science’s National Cooperative Research Program (NCHRP), Boston Strategies International examined and described the tools and data-management systems that underlie private sector performance-based resource allocation processes in order to guide public sector organizations such as state Departments of Transportation in setting appropriate targets and processes for allocating resources. Boston Strategies International helped to identify and describe the institutional relationships within private sector companies that are needed to support performance-based resource allocation. This involves describing and categorizing the complete decision-making context for private sector organizations. We are compiling actual case studies to identify and describe the practices of private-sector transportation and logistics companies that have undertaken performance measurement programs and initiatives.

US Agency for International Development.

For USAID, BSI staff quantified Tunisia’s comparative advantage of agricultural production for hard and soft wheat, dates, potatoes, barley, oranges and olive oil. BSI analyzed the “domestic resource cost” of seven agricultural commodities in (potatoes, oranges, olives, dates, hard wheat, soft wheat, and barley) in order to assess the success of privatization programs and advise on the development an import substitution policy and supporting institutional, regulatory and legislative frameworks.

City of New York.

  • The New York City Housing Authority (NYCHA) engaged BSI to quantify and model end-to-end supply chain costs and operations, and model alternative scenarios, in order to determine the most efficient and effective degree of centralized warehousing.
  • Boston Strategies International compiled a baseline supply chain cost; developed a baseline of the flows, unit costs, and service levels; evaluated the costs of several decentralized scenarios; audited the current operation and identify any gaps in management practices that would affect the comparison; and documented the findings in a full-text report with supporting illustrations, diagrams, and tables.
  • Based on the analysis, BSI successfully the City in petitioning for an exception to the nationwide ruling on centralized warehousing, and offered specific strategies and tactics to further reduce New York’s procurement and warehousing costs.

City of Detroit.

For a railroad, quantified the economic impact of a major cross-border rail tunnel.  Assessed the soundness of the business strategy and quantified the economic impact to be generated during the construction phase and ongoing operations.

The World Bank and Other International Lending Institutions.

In support of privatization initiatives, BSI staff has helped governments and lending institutions audit business plans, restate financial results, forecast financial performance under various scenarios, and screen potential buyers.

  • For the OECD, supported projects to help small and medium-sized enterprises in the GCC and Jordan become more competitive. Also supported business integrity initiatives in the MENA region, notably concerning public-private partnerships in Morocco.
  • For a Polish copper mine, BSI staff assisted in the restructuring of the holding company during its transition to private ownership and operation.
  • For the government of New Zealand (on behalf of an investment bank), BSI staff assessed the business plan and quantified the market price of the national railway. We interviewed senior executives to determine realism of management projections.  Developed scenarios to sell, “run down,” or break up the railway, estimating sales revenue for the government’s Treasury.