Value-Oriented Impact Assessment: The Economics of a New Approach to Impact Assessment

Journal of Environmental Planning and Management, Vol. 47, No. 6, pp. 921-941, 2004

Posted: 2 Feb 2005

See all articles by Frank Figge

Frank Figge

KEDGE Business School

Tobias Hahn

KEDGE Business School

Abstract

Environmental Impact Assessment has gained a prominent position as a tool to evaluate the environmental effects of economic activities. However, all approaches proposed so far use a burden-oriented logic. They concentrate on the different environmental impacts in order to ascertain the overall environmental damage caused by economic activity. This paper argues that such a burden-oriented view is (a) hampered by a series of methodological shortcomings which hinders its widespread use in practice; and (b) is analytically incomplete. The paper proposes a value-oriented approach to impact assessment. For this purpose an economic analysis of the optimal use of environmental and social resources is conducted from both a burden-oriented and a value-oriented standpoint. The basic logic of a value-oriented impact assessment is explained, as well as the resulting economic conditions for an optimal use of resources. In addition, it is shown that value- and burden-oriented approaches are complementary to achieve optimality. Finally, the paper discusses the conditions under which the use of burden- or value-oriented impact assessments is appropriate, respectively.

Keywords: Opportunity cost, value-based sustainability management

Suggested Citation

Figge, Frank and Hahn, Tobias, Value-Oriented Impact Assessment: The Economics of a New Approach to Impact Assessment. Journal of Environmental Planning and Management, Vol. 47, No. 6, pp. 921-941, 2004. Available at SSRN: https://ssrn.com/abstract=658921

Frank Figge

KEDGE Business School ( email )

Domaine de Luminy
BP 921 13288 Marseille Cedex 9, 13288
France

Tobias Hahn (Contact Author)

KEDGE Business School ( email )

Domaine de Luminy - BP 921
BP 921
Marseille, PACA 13288
France
+33491827313 (Phone)

HOME PAGE: http://www.kedgebs.com

Register to save articles to
your library

Register

Paper statistics

Abstract Views
473
PlumX Metrics