Assessing the public interest in environmental assessment: lessons from cost-benefit analysis of an energy megaproject
Chris Joseph, Thomas Gunton, James Hoffele
Abstract
The potential contribution of cost-benefit analysis to environmental assessment is assessed through a case study of a proposed Canadian oil project and a comparison of results with those of the method of economic impact analysis. While the latter concludes that the project would generate substantial economic benefits, the cost-benefit analysis concludes that the project would be a net loss to society and that new oil mining is uneconomic. The case study demonstrates that economic impact analysis can help inform decision-makers of projects’ economic impacts, but the cost-benefit analysis should be used to help inform decision-makers with respect to the contribution of projects to the public interest. It is time to move beyond relying solely on economic impact analysis to measure project benefits in environmental assessment decision-making.