Cost and Benefits of

EIA
ENVS304

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Costs and benefits of EIA
Carrying out an EIA and preparing the report cost
money therefore

 Cost effectiveness should be an important

consideration for any EIA system
 The proponent benefits from the project so is the one
who bears the EIA cost
 Polluter Pays Principle
Costs and benefits of EIA
 Despite costs associated with undertaking EIA,
 benefits over the life of a project can repay the cost
many times over.

 Benefits can be in 2 forms:

1. Economic
 e.g. identification of least cost alternative

2. Environmental
 e.g. impact reduction, restoration etc.
Costs and Benefits of EIA
Environmental benefits are based on:
 Prevention of environmental damage
 Which will normally require repairs by the
public sector at a late stage

 Move towards sustainability created by

effective EIA implementation

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The benefits
 Through analysis of alternatives, EIAs result in
improved design, technology or site/location
changes that have reduced cost
 saving time and money
 reduces waste outputs

 A well-designed project can minimise risks and

impacts on the environment and people,
 thereby avoid associated costs of remedial treatment or
compensation for damage.
The benefits
 Ensuring compliance with environmental
standards.
 reduces damage to the environment and
disruption to communities.
 avoids the likelihood of penalties, fines and
loss of trust and credibility.
The benefits
 EIA can avoid undue costs of
unanticipated impacts.
 Costs increase if environmental problems
were not considered from the start of proposal
design and require rectification later.
The benefits
 Reduced time and costs of approvals of
development applications.
 Ifall environmental concerns are carefully
considered in EIA, it is unlikely that approval
will be delayed.
 delays occur if decision-makers ask for additional
information or alterations to mitigation measures.

 Increased project acceptance by the public

The benefits
 Better quality EIA work improves/raises
environmental awareness of the personnel
involved in the project.
Potential gains from EIA increase
the earlier the process is applied
in the design process.
Some limitations
 Although many proponents complain that EIA
causes excessive delays in projects, many of
these are caused by poor administration of
the process rather than by the process itself.
These occur when:

 the EIA is commenced too late in the project

cycle;
 the terms of reference are poorly drafted;.
Limitations contd.
 the EIA is not managed to a schedule;

 thetechnical and consultative components of

EIA are inadequate; and

 theEIA report is incomplete or deficient as a

basis for decision making.