With economic studies, it’s common to see two terms – economic contribution and economic impact
. So, what’s the difference?
Impact studies focus on how a change in policy, infrastructure, or other influence will result in a change in economic conditions.
Contribution studies look at existing policies, infrastructure, or other factors and estimate the amount that these contribute or support economic activity.
Examples of impact studies could be:
A new housing development
The construction of a new building and the associated new jobs
Changes in the operating plans from a traffic control center to improve the way traffic signals function and how efficiently they operate – leading to less delay and fewer collisions
Or the extension of a road to make an important connection in the roadway network
The key distinction for impact studies is the focus on something that is new or has changed.
Examples of economic contribution studies include:
Studying how airports support local businesses with the ability to connect to markets and deliver goods and services in a timely manner
Exploring the supply chains and industries that are supported by a deepwater seaport
Investigating how public transit customers benefit from the access to work, education, medical appointments, and shopping with buses
The key distinction for contribution studies is the focus on something that is currently operating or in place and how it supports economic activity.
