How to Prepare an Economic Impact Statement

by Devra Gartenstein; Updated September 26, 2017
2015 NetEase Annual Economist Conference

An economic impact statement is a document that describes and assesses the economic impact of a project on any parties who may be affected by it. Economic impact statements are often political documents, drafted by organizations to enlist support for their endeavors. But economic impact statements can also be honestly crafted tools aimed at organizing and evaluating information for the purpose of evaluating whether a project is viable. A well written economic impact statement is based on solid information, thoughtful reasoning and sound projections.

Step 1

Describe the program or venture that your economic impact statement evaluates. State the goals and objectives in descriptive language, and also in quantitative terms. For example, if you are writing an economic impact statement for a program dedicated to finding useful employment for at-risk youth, describe the program's goals in terms of constructive outcomes, such as reducing crime and also specify the number of youth your program can reach at its current level, and the number it could reach if the proposed project is put into effect.

Step 2

Explain the economic impact that you expect your program or project to have. Provide details explaining who it will affect, how it will affect them, and the projected dollar value of this impact. Outline these monetary consequences holistically, tracing connections between different groups of people, businesses and institutions that will feel the economic consequences of your endeavor. For example, if you are writing an economic impact statement for an environmental cleanup, include its potential effect on housing prices in the area, the income it would generate for workers, and the medical bills that will be averted by having cleaner air. Provide textual explanation of the qualitative effect of each of these variables, and also quantify them by providing numerical projections.

Step 3

Provide support information for your economic impact statement. Include the name of the author and contact person, as well as the name, address and email of the organization. Specify your funding sources and any other organizations affiliated with the project. Also provide details about the geographic area that will be affected by your project, including the names of cities and towns.

About the Author

Devra Gartenstein has owned and run a variety of food businesses for more than 20 years. She has published two cookbooks: "The Accidental Vegan" and "Local Bounty." Gartenstein holds Master of Arts degrees in philosophy and English literature.

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