What is Economic Impact Analysis?
Economic Impact Analysis (EIA) is the process that government and private stakeholders use to quantify the economic effects of a project, policy, institution, or event. EIA is a critical part of the planning process because it helps decision makers forecast how their project will affect various economic benchmarks, including employment, personal income, gross domestic product (GDP), tax revenue, and more. EIA is conducted frequently by Economic Development Corporations (EDCs), Universities, MPOs, DOTs, Regional Planning Councils (RPCs), consultants, private corporations, and more.
Most EIA tools will show a project’s direct and indirect effects, but it is also essential to capture the induced effects. REMI’s dynamic economic models are uniquely equipped to forecast the total induced impacts of projects. Our models capture the regional, rippling economic interactions over time between all aspects of an economy, including labor markets, price levels, migration, productivity, and more
