Lecture: Principles of Analysis: Impact Analysis PDF

Principles of Analysis: Impact Analysis APEC 3012 Principles of Analysis Today, we will learn tools of analysis to help make decisions about policy and fix market inefficiencies It should be clear that some tools are helpful at determining efficiency or equity of public policie...

Principles of Analysis: Impact Analysis APEC 3012 Principles of Analysis Today, we will learn tools of analysis to help make decisions about policy and fix market inefficiencies It should be clear that some tools are helpful at determining efficiency or equity of public policies and regulations Principles of Analysis Impact analysis: seeks to measure the impact of public action (regulation) on a designated sector of society or the economy Benefit cost analysis: looks at social feasibility to evaluate if benefits to society exceeds costs to society Impact Analysis Impact analysis: seeks to measure the impact of public action (regulation) on a designated sector of society or the economy 1) Environmental Impact analysis (efficiency and equity) 2) Economic impact analysis: (efficiency and equity) Environmental Impact Analysis Environmental Impact Analysis (efficiency and equity) Definition: Identification and elaboration of all repercussions of a designated activity on all or part of the natural environment resource base Qualitative and quantitive in nature Value or worth not assessed or emphasized Economic analysis doesn’t enter in to assist in scale, magnitude or scope Environmental Impact Analysis History: National Environmental Policy Act of 1970- US law requiring agencies of federal government conduct environmental impact assessment of proposed laws and of other major federal actions affecting quality of human environment. End result is environmental impact assessment or environmental impact report Environmental Impact Analysis Components: Description of environmental impact of action Any adverse environmental effects that are unavoidable Alternatives to proposed actions Relationship between short term use, maintenance, and enhancement of long-term productivity Identifies if proposal features irreversible and inevitable commitments of natural resources Environmental Impact Analysis https://www.youtube.com/watch?v=HJy-mkoEnMM (Environmental Justice) https://www.youtube.com/watch?v=S1x8rX7U3Hg (Environmental assessment example) Environmental Impact Analysis Between January 1, 1998, and December 31, 2006, 53 federal executive branch entities made available to the public 2,236 final environmental impact statements (EISs). The time to prepare an EIS ranged from 51 days to 6,708 days (18.4 years). The average time for all federal entities was 3.4 years. Piet deWitt & Carole A. deWitt (2008) How Long Does It Take to Prepare an Environmental Impact Statement?, Environmental Practice, 10:4, 164-174, DOI: 10.1017/S146604660808037X Environmental Impact Analysis Pros: Helps evaluate other impacts not historically considered Broader scope than $$ Involves public in decision-making process Can help identify and solve equity issues Can identify efficiency issues that were not considered Environmental Impact Analysis Cons: Time intensive No $$$ No final conclusions that can be put in a broader perspective No way to compare or evaluate findings Economic Impact Analysis Economic impact analysis: (efficiency and equity) Definition: How public or private actions affect certain dimensions of an economic system Local, national or international in scope Example of impacts: employment, household income, rates of technical change, rates of inflation, trade balances Economic Impact Analysis Data inputs (qualitative and quantitative) are of extreme importance to accurately evaluate effects and model Final results can be put into dollar amount Can work with environmental impact analysis Economic Impact Analysis https://www.ksl.com/article/42844382/agriculture-a dds-21b-to-utahs-economy Economic Impact Analysis Economic Impact Analysis Economic Impact Analysis Note: just focus on the direct impacts. Indirect and induced impacts show how spending moves through the local economy Value added: taxes, firm owner income other economic benefit from activity Economic Impact Analysis Economic Impact Analysis We can see economic impacts for agriculture by: Type of production practice Type of manufacturing process Impact of activity on: employment, wages, taxes, etc. Impact on different sectors of the economy outside of the one being analyzes (Example: lodging (hotels), food and restaurants, other manufacturing industries) Regional impacts throughout the state or area of interest Economic Impact Analysis Pros: Puts all impacts into economic framework Provides thorough analysis across different attributes of economy Economic Impact Analysis Cons: Narrow in that it only considers economic impacts Can be time and data intensive Can ignore other environmental impacts or others that cannot be captured in monetary assessment Conclusions Type of impact analysis is determined by the type of resource and policy considered We might want to consider doing both types of analyses to target different findings As always, often constrained by time, money, and resources