expertise

Social Cost-Benefit Analysis (SCBA)

complete overview of

Impacts on society

A Social Cost-Benefit Analysis (SCBA) shows whether an investment or policy measure regarding aviation will be beneficial to society. An SCBA considers all impacts that are considered of importance by society. Besides positive impacts on consumers and businesses, these include negative impacts on the climate and the environment.

A SCBA is therefore broader than an economic impact study. In a SCBA, the various impacts are quantified and expressed in monetary terms (monetised) as much as possible. This makes the impacts comparable and addable.

steps in a SCBA

Methodology

In a SCBA, the impacts of an investment or policy measure are determined by comparing a situation with the investment or policy measure (the project scenario) with a situation in which the investment or measure does not take place (the reference scenario). This requires the following three steps:

1. Definition of scenarios

First, the reference and project scenarios are defined. As the impacts in a SCBA are considered over a period of 50-100 years, the scenarios should also be defined over such a time period. This means that a traffic forecast is required for each scenario which takes into account developments with regard to travel demand, fleet composition and policy.

2. Assessing impacts

The impacts are estimated for users, producers, the climate and the environment. These include changes in travel costs, operating profits, emissions and noise. Preferably, dedicated transport, emissions and noise models are used for this purpose.

3. Monetization

The impacts are expressed into monetary terms (monetized) using key figures. Finally, the annual impacts are discounted and added up to produce an overall balance. The balance shows whether the investment or policy measure benefits society or not. By breaking down the balance by different groups, it becomes clear which groups benefit from the investment or policy measure and which groups do not.

for airports and governments

Applications

SCBAs are used to portray the impacts of projected investments and policy measures on society. Airports and governments use the results in their decision-making process. However, an investment plan or policy measure with a positive SCBA balance does not always have to lead to a positive decision.

After all, there may be other investments or measures with an (even) more positive SCBA balance. In addition, an investment or measure with a positive balance may be abandoned if the SCBA shows that it has a very negative impact on certain groups in society.

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experience with different

Types of impact studies

Beelining has extensive experience with different types of impact studies, including economic and environmental impact studies, Social Cost-Benefit Analyses (SCBAs) and cost-effectiveness studies. Which type of study is most appropriate depends on the research question.

Economic impact

How much employment and value added (GDP) are supported by an airport, airline or route?

Environmental

How much emissions does the operation of an airport or airline cause and how can they be reduced?

SCBA

Do the positive impacts of an investment or policy measure outweigh the negative impacts on society?

Cost-effectiveness

Which investment or policy measure achieves a given emission or noise target at the lowest possible cost?