A comprehensive economic impact assessment framework with some examples from the open cut and underground coal mining in India

Economic Impact Assessment (EcIA) is an important part of a broader environmental impact assessment (EIA) process. However, EcIA has not been used to its full potential. This paper suggests a comprehensive framework of projects’ impact assessment which utilises two complementary techniques such as risk assessment (RA) and regional impact analysis (e.g., input output analysis) of alternative investments in an extended cost benefit analysis (CBA). Types of impacts that warrant an inclusion of RA in EcIA are discussed. The extension of regional impact analysis can assist in increasing positive impacts from proposed projects for local economies. Comprehensive EcIA could help to improve overall economic impact assessment of projects especially those projects that might be potentially damaging for the environment and communities, although they would bring employment and income in the regions. Qualitative discussion using some examples from coal mining in India is provided.