17.5 Economic Impact Assessment as One Type of Socioeconomic Impact Assessment
249
output. Actually, direct effects are data in the 1-0
model. Indirect effects are those changes in input
demand (in dollar terms) caused by changes in direct effects (hence the ripple effect). Induced effects are changes generated as household incomes
change. Indirect and induced effects are forecast by
the 1-0 model.
Numerous 1-0 models may be used, ranging
from simply applying 1-0 multipliers developed in
applied studies to secondary data models often involving national coefficients modified by data reduction techniques to apply to the region or, more
rarely, to models based on primary data collection
or a combination of primary and secondary data.
Approaches requiring primary data collection usually require so much time and money that they are
not feasible for assessments. The rest of this chapter will focus on information systems for economic
impact analysis requiring only secondary data.
17.5 Economic Impact
Assessment as One Type
of Socioeconomic
Impact Assessment
Socioeconomic impacts have been categorized by
Sell et al. (1998) as including economic impacts,
demographic impacts, public service impacts, fiscal impacts, and social impacts. These impacts are
very interconnected. Economic impact assessment
is concerned with measurement of past and potential impacts of development projects in terms of (1)
production of goods and services or total regional
output, usually in dollar terms, (2) salaries and
wages and broader, regional income, and (3) employment in terms of number of jobs, either fulltime equivalents or aggregated full-time and parttime jobs. Demographic impacts quantify changes
in the size, composition (in terms of cohorts), and
distribution of the population. Public service impacts quantify public services, facilities, and infrastructure needed. Fiscal impacts quantify changes
and costs and revenues to governmental jurisdictions. Social impacts, in contrast, usually are considered to be broader in scope, considering impacts
in terms of well-being of people, including physical and psychological health in the context of their
institutional framework and sociological relationships. Sell et al. (1998, p. 3) indicate this category
quantifies "changes in the patterns of interaction,
the formal and informal relationships resulting
from such interactions, and the perceptions of such
relationships among various groups in a social setting." An essential aspect of measuring social impacts is to obtain inputs from the appropriate
publics. There are a number of methods and techniques needed in this type of assessment that are
not characteristic of other aspects of the ecological
assessment. As noted by Haque (1996, p. 345), detailed surveys of the population groups likely to be
affected are essential in social impact assessment,
in contrast to the other types of socioeconomic impacts, which may be analyzed by the use of secondary data:
Although it offers a weak form of participation from a
PI [public involvement] perspective, questionnaire surveys such as community surveys, community leader
studies, and synchronized policy issue studies are considered a useful PI technique. PI inputs are needed in
various stages of the SIA [Social Impact Assessment]
process, especially in the formulation of alternatives, assessment, evaluation, and monitoring stages (Smith,
1984). Formulations of attitudes toward the project, perceptions of public welfare, and interest group activities
can be considered in compiling a social profile that can
be used in the decision-making and planning processes.
Also, as was stated above in terms of the economic and ecological modeling, Haque (1996, p.
345) notes a potential problem in incompatible regionalizations between economic impact analysis
and social impact analysis:
REIA [regional economic impact assessment] and SIA
have apparent incompatibility because of their application of different spatial scales: REIA tends to emphasize
macro-regional economic growth effects and SIA
stresses local-level changes in social variables, such as
health, education, social relations, and amenities. SIA underscores the importance of PI in the project decisionmaking process whereas the scope for PI in regional economic analysis is minimal.
Of course, REIA and SIA overlap in several important areas. As pointed out by Haque (1996, pp.
345-346):
On the one hand, many social variables are relevant to
REIA-based planning. Predicted changes in employment
are influenced by the derived demand for social services,
future demographic changes, future demand for infrastructure, and the likely regional social and community
mix-all social variables. On the other hand, SIA overlaps with regional development objectives, which have
as their main elements regional employment and regional
infrastructure.
To provide accurate estimates of economic impact, it is necessary to provide funding and efforts
at the same level of intensity as those allocated to
the other phases of the assessment. An appropriate
balance between measures of ecological, economic,
and social performance and impacts should be
achieved in the assessment.
249
output. Actually, direct effects are data in the 1-0
model. Indirect effects are those changes in input
demand (in dollar terms) caused by changes in direct effects (hence the ripple effect). Induced effects are changes generated as household incomes
change. Indirect and induced effects are forecast by
the 1-0 model.
Numerous 1-0 models may be used, ranging
from simply applying 1-0 multipliers developed in
applied studies to secondary data models often involving national coefficients modified by data reduction techniques to apply to the region or, more
rarely, to models based on primary data collection
or a combination of primary and secondary data.
Approaches requiring primary data collection usually require so much time and money that they are
not feasible for assessments. The rest of this chapter will focus on information systems for economic
impact analysis requiring only secondary data.
17.5 Economic Impact
Assessment as One Type
of Socioeconomic
Impact Assessment
Socioeconomic impacts have been categorized by
Sell et al. (1998) as including economic impacts,
demographic impacts, public service impacts, fiscal impacts, and social impacts. These impacts are
very interconnected. Economic impact assessment
is concerned with measurement of past and potential impacts of development projects in terms of (1)
production of goods and services or total regional
output, usually in dollar terms, (2) salaries and
wages and broader, regional income, and (3) employment in terms of number of jobs, either fulltime equivalents or aggregated full-time and parttime jobs. Demographic impacts quantify changes
in the size, composition (in terms of cohorts), and
distribution of the population. Public service impacts quantify public services, facilities, and infrastructure needed. Fiscal impacts quantify changes
and costs and revenues to governmental jurisdictions. Social impacts, in contrast, usually are considered to be broader in scope, considering impacts
in terms of well-being of people, including physical and psychological health in the context of their
institutional framework and sociological relationships. Sell et al. (1998, p. 3) indicate this category
quantifies "changes in the patterns of interaction,
the formal and informal relationships resulting
from such interactions, and the perceptions of such
relationships among various groups in a social setting." An essential aspect of measuring social impacts is to obtain inputs from the appropriate
publics. There are a number of methods and techniques needed in this type of assessment that are
not characteristic of other aspects of the ecological
assessment. As noted by Haque (1996, p. 345), detailed surveys of the population groups likely to be
affected are essential in social impact assessment,
in contrast to the other types of socioeconomic impacts, which may be analyzed by the use of secondary data:
Although it offers a weak form of participation from a
PI [public involvement] perspective, questionnaire surveys such as community surveys, community leader
studies, and synchronized policy issue studies are considered a useful PI technique. PI inputs are needed in
various stages of the SIA [Social Impact Assessment]
process, especially in the formulation of alternatives, assessment, evaluation, and monitoring stages (Smith,
1984). Formulations of attitudes toward the project, perceptions of public welfare, and interest group activities
can be considered in compiling a social profile that can
be used in the decision-making and planning processes.
Also, as was stated above in terms of the economic and ecological modeling, Haque (1996, p.
345) notes a potential problem in incompatible regionalizations between economic impact analysis
and social impact analysis:
REIA [regional economic impact assessment] and SIA
have apparent incompatibility because of their application of different spatial scales: REIA tends to emphasize
macro-regional economic growth effects and SIA
stresses local-level changes in social variables, such as
health, education, social relations, and amenities. SIA underscores the importance of PI in the project decisionmaking process whereas the scope for PI in regional economic analysis is minimal.
Of course, REIA and SIA overlap in several important areas. As pointed out by Haque (1996, pp.
345-346):
On the one hand, many social variables are relevant to
REIA-based planning. Predicted changes in employment
are influenced by the derived demand for social services,
future demographic changes, future demand for infrastructure, and the likely regional social and community
mix-all social variables. On the other hand, SIA overlaps with regional development objectives, which have
as their main elements regional employment and regional
infrastructure.
To provide accurate estimates of economic impact, it is necessary to provide funding and efforts
at the same level of intensity as those allocated to
the other phases of the assessment. An appropriate
balance between measures of ecological, economic,
and social performance and impacts should be
achieved in the assessment.