How can you determine the appropriate level of detail for an economic impact assessment?

1 Define your objectives

The first step in choosing the level of detail for an EIA is to clearly define your objectives and research questions. What are you trying to achieve with the EIA? Who are you trying to inform or influence? What are the main issues or challenges that you want to address? How will you communicate your findings and recommendations? Your objectives will guide you in selecting the most relevant and feasible indicators, methods, and data sources for your EIA.

2 Understand your context

The second step is to understand the context and characteristics of the project, policy, or event that you are assessing. How large is its scale and scope? How long is its duration and frequency? How certain or uncertain are its outcomes and impacts? How direct or indirect are its effects on the economy? How sensitive or resilient is the affected area or sector to external shocks or changes? The context will help you determine the level of detail and accuracy that is required and realistic for your EIA.

3 Choose your approach

The third step is to choose your approach and framework for conducting the EIA. There are different types of EIAs, such as input-output analysis, cost-benefit analysis, computable general equilibrium modeling, and social return on investment analysis. Each type has its own strengths, limitations, and assumptions. You should choose the type that best suits your objectives, context, and available resources. You should also consider the trade-offs between simplicity and complexity, breadth and depth, and quality and quantity of information.

4 Assess your data

The fourth step is to assess the data that you need and have for the EIA. Data is the foundation of any EIA, and it should be reliable, relevant, and consistent. You should identify the sources, methods, and frequency of data collection and analysis. You should also evaluate the data gaps, uncertainties, and risks that may affect your EIA. You should balance the level of detail and aggregation of data with the level of detail and disaggregation of your results.

5 Review your results

The fifth step is to review your results and check their validity, reliability, and robustness. You should compare your results with other studies, scenarios, or benchmarks. You should also test the sensitivity and elasticity of your results to changes in key assumptions, parameters, or variables. You should acknowledge the limitations and caveats of your EIA, and avoid overestimating or underestimating the impacts. You should present your results in a clear, concise, and transparent way.

6 Engage your stakeholders

The final step is to engage your stakeholders and solicit their feedback, inputs, and suggestions. Stakeholders are the people or groups who are affected by or interested in the project, policy, or event that you are assessing. They can include government agencies, private sector entities, civil society organizations, academic institutions, and media outlets. You should involve them throughout the EIA process, from defining the objectives to reviewing the results. You should also consider their perspectives, expectations, and preferences in determining the level of detail for your EIA.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?