What is an Economic Impact Study (EIS)?
An Economic Impact Study (EIS) is a detailed analysis that assesses the overall economic consequences of a specific event, project, or policy within a defined geographic area. It measures the ripple effects of economic activity throughout the community.
Why is an Economic Impact Study important?
Quantifies Economic Benefits: An EIS goes beyond simply stating that a project will create jobs or boost the economy. It provides concrete data and estimates to quantify the exact impact on various economic indicators, such as:
Job creation and wage growth
Increased business activity and revenue
Tax revenue generation for local and state governments
Changes in property values
Informs Decision-Making: An EIS can be a valuable tool for policymakers and community leaders. It provides a clear picture of the economic pros and cons and helps them assess the true value of a project and weigh the potential benefits against any potential costs.
Promotes Transparency and Accountability: A well-defined EIS fosters transparency by publicly outlining the expected economic impact of a project. This allows for informed public debate and fosters accountability for the project's outcomes.
Secures Funding and Investment: A positive EIS with strong economic justification can be instrumental in securing funding or attracting investment for a project. It demonstrates the potential for economic growth and return on investment.
Compares Alternatives: An EIS can be used to compare the economic impacts of different project options or policy proposals. This allows for a more nuanced understanding of each approach's potential benefits and drawbacks.
Using the Template
To use the template below, start by creating a new report. This will initiate the report generation process. Then, simply copy and paste the purpose, sections, and subsections to build your outline. Feel free to modify this template to suit your specific reporting needs.
Building Your Template
Purpose: The primary purpose of this Economic Impact Study is to comprehensively assess the direct, indirect, and induced effects of [specific project, policy, or event, e.g., the construction of a new sports facility] on the local and regional economy.
Outline Sections:
Title: Economic Impact of [Project Name] on [Location]
Introduction: Briefly describe the project and its goals.
Methodology: Explain how the economic impact was measured, including data sources and methods used.
Findings: Quantify the impact of the project on various economic indicators, such as:
Job creation
Increased wages
Business Formation
Tax revenue generation
Increased property values
Conclusion: Summarize the overall economic impact of the project and its significance for the community.
Updated: 6 September 2024