Impact Analysis and Environmental Impact Assessment

Principles of Analysis: Impact Analysis

• Impact analysis aims to measure the effect of public actions (like regulations) on a specific sector of society or the economy.
• Benefit-cost analysis assesses if the societal benefits of an action outweigh the costs.

Impact Analysis

• Impact analysis measures the impact of public action (regulation) on a sector of society or the economy.

Environmental Impact Analysis

• Aims to identify and detail all environmental consequences of an activity.

• Focuses on qualitative and quantitative impacts.

• Ignores economic values when assessing magnitude or scope.

• The National Environmental Policy Act of 1970 compels US federal agencies to assess the environmental impact of proposed laws and major federal actions affecting the human environment.

• This results in an Environmental Impact Assessment or Report.

• Components include:

  • Description of the environmental impact.
  • Description of unavoidable adverse environmental effects.
  • Identification of alternatives to proposed actions.
  • Analysis of the relationship between short-term use and long-term productivity.

• Identification of irreversible and inevitable commitments of natural resources.

• Links to examples of environmental justice and assessments.

Economic Impact Analysis

• Determines how public or private actions impact different dimensions of an economic system (efficiency and equity).

• Analyzes local, national, or international impacts, encompassing employment, household income, technical change, inflation, and trade balances.

• Data inputs (qualitative and quantitative) are crucial for accurate model effects.

• Results can be expressed in monetary terms.

• This analysis can complement environmental impact assessments.

• Agriculture significantly contributes to Utah's economy (>$21 billion).

• Breakdown of cash receipts by primary agricultural products (2008-2014).

• Data on agricultural processing and manufacturing sectors.

• Table showing the economic contribution of Utah's agriculture to the state economy in 2014, (direct, indirect, induced impacts).

• Tables detailing the importance of all manufacturing and food manufacturing in Utah and its metropolitan statistical areas, highlighting employment, payroll, and percentage contributions compared to total manufacturing.

• Economic impact assessment type examples:

  • Type of agricultural practice.
  • Type of manufacturing process.
  • Impact on employment, wages, taxes.
  • Impact on broader sectors outside primary sector (lodging, food, other manufacturing).
  • Regional impacts throughout the state/area.

Economic Impact Analysis (Pros and Cons)

• Pros:*
• Summarizes impacts into an economic framework.
• Provides thorough analysis encompassing various economic aspects.
• Cons:*
• Primarily focuses on economic impacts.
• Can be time and resource-intensive.
• May overlook other impacts (environmental) that aren't easily quantifiable in monetary terms.

Conclusions

• Impact analysis type depends on the resources and policies studied.
• It's beneficial to combine both environmental and economic analyses to get a thorough picture of a situation.
• Resources (time, money) are frequently limiting factors of impact assessments.

This quiz explores the principles of impact analysis, including benefit-cost analysis and environmental impact assessments as mandated by the National Environmental Policy Act. Learn how public actions influence society and the economy, as well as the environmental consequences of these actions. Test your understanding of key concepts and terminology related to impact analysis.