E-learning as a Regional Policy Tool: Principles for a Cost-benefit Analysis

A bill presented by the Swedish Government in 2001 stated that higher education should aim for a broader recruitment of students. The use of ICT-tools is pointed out as a way of reaching new student groups, e.g. students who are immobile due to their social situation or physical handicap. At the same time, a number of regions in Sweden struggle with negative net migration that is to a large extent driven by labour market conditions and younger people moving away for higher education. These regions experience a shortage of human capital within certain competence areas. In line with the aim of the government bill, national and local governments tackle this by integrating higher education and regional policy; i.e. bringing higher education to the inhabitants in an attempt to target groups such as those with strong bonds to the region hoping to encourage them to remain in the region after graduation. Higher education is costly and it is the local governments who bear the added cost of bringing education to the inhabitants. In order to minimize costs, programmes and courses are therefore given by the use of ICT-tools. The degree of net-based training (e-learning) varies over programmes and courses from 100 percent net-based to blended learning. At least three questions are important when deciding whether or not to invest in net-based higher education: Are new target groups reached? Is the net-based education of the same quality, or higher, compared to the alternative on-campus programme? Is the investment motivated from a welfare perspective? The aim of this paper is to analyse e-learning as a regional policy tool and present the principles for social cost benefit analysis concerning net-based higher education. In addition, empirical evidence from a Swedish case study is briefly presented.