Module –2

Socio Economic Impacts

Physical, Social, Aesthetic and Economic
Environment, Type of Socio economic Impacts,
Outline of basic steps in performing the socio
economic assessment, Fiscal Impacts Analysis
 Module-2
Socio Economic Impacts
Social, Aesthetic and Economic Environment- Same as stated as in unit 1

Type of Socio economic Impact-

The social environment is a composite of numerous interrelated factors. Although these items
may be identified from checklists, interviews, etc., the inter-relationships are generally poorly
understood and have largely been ignored in project planning. In part, this problem is caused by
a failure to recognize that social processes have feedback (IWR, 1975). For example, the
construction of a highway through open countryside may cause residential and industrial areas to
develop along the road, making the highway more necessary than before (IWR, 1975; Wolf,
1975). As another example, tentative population projections may become a reality as a result of
actions undertaken on the basis of these projections (Hollis and McEvoy, 1973).
Some general areas of human concern that should be considered within an EIA were listed
in Chapter 3 in Table 3.3. The concerns are related to various kinds of effects and impacts, many
of which are socio-economic. From several published lists, a short set of impact categories is
given in Table 6.1 (Shields, 1975) and a long set in Appendix 6 (Olsen and Merwin, 1977).
Other lists are to be found in Canter (1977) and Finsterbusch and Wolf (1977). Most of the
categories have been designed for use in North America, and their applicability in other parts of
the world has not been tested.
Many of the possible sociological effects and impacts are project- or process- specific, the
relevant set for a flood-control development being quite different from that for a nuclear power
station. With some forethought, therefore, the assessor should be able to prepare a short list of
effects that need to be investigated in his particular case. How large are the effects? What
impacts will they have on the community? An example of a process-specific set of
socio-economic indicators is given in Table 6.2, which was developed at the 1977 Nairobi
Seminar on Desertification (Reining, 1977).

A General List of Socio-Economic Impact Categories (Shields, 1975)

1. Demographic impacts: rural depopulation; suburban growth; etc.
2. Economic impacts: income, employment, and taxes; the affected parties; impacts on business
and large property owners; increased short-term and long-term employment; the 'boom and bust'
pattern of project construction; problems of local inflation and short-term changes in supply and
demand patterns;
3. Impacts on social values and attitudes:
Community cohesion; the social integration of the community and the
mechanisms by which individuals and groups within a defined area maintain
functional ties with one another;
 1. Life style, a perceptual and behavioral dimension, referring to accepted values
and day-to-day behavior in the affected communities, as well as to outsiders'
views of these values and behavior.
Socio-Economic Indicator Categories for Desertification (Reining, 1977)
1. Land use
1. Irrigated agriculture
2. Dryland agriculture
3. Pastoralism
4. Cutting and removal of vegetation for fuel and construction
5. Mining
6. Tourism and recreational use
2. Settlement pattern, especially in rural populations and in relation to energy sources
1. New settlement
2. Expansion of settlement
3. Diversification of settlement
4. Abandonment of settlement
3. Human biological parameters
1. Population structure and rates
2. Measures of nutritional status
3. Public health indices
4. Social process parameters
1. Conflict
2. Migration
3. Redistribution patterns
4. >Marginalization
5. Cash vs. subsistence
Outline of basic steps in performing the socio economic assessment-
The ―Six Steps of SEIA‖
1. Scoping
A preliminary analysis that identifies and prioritizes SEIA considerations and required
information.
Early and effective scoping narrows the focus of SEIA onto issues of potential significance.
2. Profiling Baseline Conditions
Focuses on gathering information about the socio-economic environment and context of the
proposed development.This can include defining measurable indicators of valued
socio-economic components.
3. Predicting Impacts
Based on the analysis of information gathered from issues scoping, baseline profiling and past
experiences to predict possible socio-economic impacts. Identifying trade offs between the
adverse and beneficial impacts of a proposed development is part of this analysis.
4. Identifying mitigation
Predicted adverse impacts require mitigation. Mitigation includes strategies, plans and programs
to reduce, avoid or manage impacts.
5. Evaluating Significance
Involves determining whether a proposed development is likely to cause significant adverse
impacts on valued socio-economic components. If appropriate mitigation measures cannot be
identified, a proposed development may not be approved.
6. Applying Mitigation & Monitoring
Good mitigation for socio-economic impacts requires good monitoring programs (also known
as ―follow up‖) to ensure the mitigation is working effectively, and, when necessary, the
mitigation is adapted as required.
SEIA Questions
Impact definition-
What are the potential socio-economic and cultural impacts of the proposed development?
Direction of impacts –
• Is the direction of the potential impacts adverse or benefi cial?
• Does impact direction shift between different groups and sub-populations? Do some benefi t
while others don’t?
• Are the tradeoffs between potential adverse impacts and potential beneficial impacts
acceptable?

Impact causes
• How could the proposed development cause socio-economic impacts?

Impact attribution
• Will the proposed development create new impacts or accelerate/exacerbate existing impacts?
• How responsible could the proposed development be for causing an impact? If this is
immeasurable, how can the developer estimate the level of responsibility in a manner that is fair
and precautionary?

Impact scope and scale

• Which populations and communities will the proposed development most likely impact?
• How far and wide, geographically, could individuals and communities feel the impacts of the
proposed development?

Impact manageability
• Will potential impacts support or undermine the affected communities’ aspirations and goals?
• How resilient are the potentially affected communities? How vulnerable are they to adverse
impacts? • Will the impacts cause unmanageable change for a community?

Impact significance
• Are the potential impacts likely, adverse and/or significant?
• Is mitigation available to manage, reduce or eliminate the potential impacts?

Impact mitigation and monitoring

• Are there existing mitigation measures that have worked for these types of impacts? If so, how
can we use them?
• How do we track the accuracy of our predictions and use adaptive management to alter
mitigation if required?

Fiscal Impacts Analysis –

In general, a fiscal impact evaluation analyzes cash flow (revenue generation and operating and
capital costs) to a jurisdiction associated with the provision of public services and facilities to
serve new development—residential, commercial, industrial, or other land use. A fiscal impact
analysis is different than an economic impact analysis, which evaluates the economic benefits to
a community in terms of jobs, income, and economic output.
Fiscal analysis enables local governments to estimate the difference between the costs of
providing services to development and the taxes, user fees, and other revenues that will be
collected by the government as a result of new development. It can be used to evaluate the level
of subsidy for or contribution of an individual project (such as a request for rezoning), analyze
changes in land-use policies (such as increasing or decreasing allowable densities for
development), assist in determining the appropriate balance of land uses (residential, retail,
industrial), or identify fiscal impacts related to a proposed annexation.
The following factors should be considered when conducting a fiscal impact analysis.

Local revenue structure

 Public services provided

 Levels of service

 Capacity of existing infrastructure

 Demographic and market characteristics of new growth

General Benefits of Fiscal Impact Analysis.
Fiscal impact analysis has many benefits for communities, whether it is used for long-term
financial, land-use, or capital planning.
General benefits include:

Identifies Projected Changes to Local Services and Revenues

 Helps define achievable levels of service

 Projects capital facility needs

 Clarifies development policy impacts

 Projects revenues and helps in the development of revenue strategies

 Encourages ―what if‖ questions

 Promotes public education of the connection between land use and fiscal condition.