Links to guidelines for socio-economic analysis of natural resource management decisions

How to use these guidelines

Frameworks presented on this site may not be relevant to every NRM issue. Care should be taken to match assessment needs (e.g. cultural, social, economic) with the relevant NRM issues (e.g. scale and type of impacts, decision criteria).

These guidelines are separated into frameworks addressing:

• General economic impact assessment
• Integrated socio-economic impact assessment
• Social impact assessment

Note: Descriptions of each framework given here are taken from the cited document and are not the views of I&I NSW or DECCW.

General economic impact assessment frameworks for NRM

NSW Government guidelines for economic appraisal
NSW Treasury (2007), Office of Financial Management, Policy & Guidelines Paper
http://www.treasury.nsw.gov.au/__data/assets/pdf_file/0016/7414/tpp07-5.pdf

Rigorous economic appraisals provide important information to decision makers. The purpose of an economic appraisal is to help choose the best means to satisfy a specified objective, and to rank competing proposals when resources are limited. The NSW Government Guidelines for Economic Appraisal promote a consistent approach to undertaking such appraisals for the assessment of significant spending proposals, including proposed capital works projects and new programs. The Guidelines are appropriate for the application of economic appraisal to other areas such as asset management, plan and program evaluation, and regulation review proposals.

 

NSW guide to better regulation
NSW Department of Premier and Cabinet (2008), Better Regulation Office
http://www.betterregulation.nsw.gov.au/better_regulation_requirements/guide_to_better_regulation

The Guide to Better Regulation was produced to help NSW agencies develop regulation which is required, reasonable and responsive. The Guide provides details on how to apply the better regulation principles to meet the NSW Government's commitment to cut red tape. It outlines the roles of the Minister for Regulatory Reform and the Better Regulation Office, and the new 'gatekeeping' processes to help stop the creation of red tape.

 

Introduction to cost-benefit analysis and alternative evaluation methodologies
Commonwealth of Australia (2006), Department of Finance
http://www.finance.gov.au/publications/finance-circulars/2006/docs/Intro_to_CB_analysis.pdf

This document introduces Cost-Benefit Analysis (CBA) in a non-technical way and outlines the basic steps for its use. Cost-benefit analysis (CBA) is a method of quantitative economic analysis that is widely used to evaluate existing and proposed projects, programs and policies, and which can inform decision-making.

Although CBA is generally a useful instrument for the evaluation of projects, programs and policies, and for showing the opportunity costs of such projects and policies, the use of CBA may not always be appropriate. CBA is also not the only relevant factor to take into account in decision-making. There are a number of factors cannot adequately be taken into account by CBA. When performing an evaluation, the choice of evaluation methodology should be appropriately documented and defensible.

Readers seeking a more technical account of these methods should refer to the NSW Government Guidelines for economic appraisal (listed above) or the Department of Finance and Administration's Handbook of Cost-Benefit Analysis.

 

Best practice regulation handbook
Australian Government (2007), prepared by the Office of Best Practice Regulation, Canberra
http://www.finance.gov.au/obpr/docs/handbook.pdf

This handbook sets out Commonwealth Government requirements for regulatory impact analysis. Compliance with these procedures and processes is mandatory for all Australian Government departments, agencies, statutory authorities and boards that make, review or reform regulations. The Commonwealth Government hopes to improve the analysis of proposals and hence the quality of regulation through a structured approach to policy development. A structured approach is needed to determine whether regulatory proposals meet the dual goals of 'effectiveness' (in addressing an identified problem) and 'efficiency' (in terms of maximising the benefits to the community, taking account of the costs).

 

Best practice regulation - A guide for Ministerial Councils and national standard setting bodies
Australian Government (2007), prepared by the Commonwealth Department of Finance and Deregulation for the Council of Australian Governments
http://www.finance.gov.au/obpr/docs/COAG_best_practice_guide_2007.pdf

This document provides guidance to Ministerial Councils and other standard setting bodies on best-practice regulation making and review. The Guide ensures that regulatory processes are consistent with principles of best practice regulatory process agreed by Council of Australian Governments (COAG) to maximise the efficiency of new and amended regulation and avoid unnecessary compliance costs and restrictions on competition.

The document also provides guidance for undertaking regulatory impact assessment and preparing a Regulation Impact Statement (RIS) including assistance on undertaking:

• risk analysis
• cost-benefit analysis
• assessments of compliance costs
• assessments of competition effects, and
• consultation.

In the case of Ministerial Councils, this Guide should act as the primary source of direction to undertaking regulatory impact assessments and making sound regulatory decisions.

 

The Green Book - Appraisal and evaluation in central government
United Kingdom Department of Treasury (2003)
http://www.hm-treasury.gov.uk/data_greenbook_index.htm

Developed by the UK Treasury, the Green Book provides guidance to promote efficient policy development and resource allocation across government. The Green Book describes how the economic, financial, social and environmental assessments of a policy, program or project should be combined. The Green Book methodology should be used to make an economic assessment of the social costs and benefits of all new policies, projects and programs including the economic assessment of regulations under regulatory impact analysis.

This guidance applies to analysis used to support government decisions to adopt a new policy, or to initiate, renew, expand or re-orientate programs or projects, which would result in measurable benefits and/or costs to the public, or to retrospective analysis of a policy, program or project at its completion, conclusion or revision.

 

Economics for accountability in community-based environmental governance
Marshall, G., McNeill, J and Reeve, I (2009)
http://www.ruralfutures.une.edu.au/downloads/WP2_373.pdf

Prepared and published by the Institute for Rural Futures at the University of New England, the purpose of this Working Paper is to identify an approach to economic accountability that is:

1. consistent with a community-based strategy for environmental management;
2. cost-effective to apply given the capacities of community-based organisations; and
3. consistent with an 'economic way of thinking'.

Three categories of ways for maintaining economic accountability are distinguished:

1. benefit-cost analysis;
2. multi-criteria analysis; and
3. deliberative methods.

These methods are described and reviewed.

Integrated socio-economic assessment frameworks for NRM

Conducting social and economic impact assessment: a practical guide for regional NRM bodies
Queensland Department of Natural Resources, Mines and Water (2004), report prepared by Jeanette Stanley, Beth Clouston and Jim Binney.
http://www.regionalnrm.qld.gov.au/research_sips/sips/social_economic/pdf/impact_assessment.pdf

This guide offers practical advice for undertaking social and economic impact assessments when designing Natural Resource Management (NRM) plans and investment strategies. By following the basic procedures outlined in these guidelines and involving the public in the SEIA and decision-making process, regional NRM bodies can both identify potential impacts, while also avoiding conflict of proposed management actions.

 

Integrating economic and social issues in regional natural resource management planning: a framework for regional NRM bodies
Cavaye, J (2003), National Action Plan for Salinity and Water Quality, Queensland Department of Natural Resources, Mines and Water.
http://www.dpi.nsw.gov.au/environment/guidelines-socioeconomic-analysis-nrm-decisions/integrating-economic-and-social-issues-in-regional-natural-resource-management-planning.pdf 

These Guidance Materials aim to assist regional bodies to incorporate economic and social considerations in regional planning and conduct appropriate social and economic analysis. It provides a logical framework, background information, methods and tools, and references to further sources of assistance in laypersons terms. They aim to help regional bodies incorporate social and economic issues into NRM planning in three ways:

1. Comparing proposed options to help formulate strategies, e.g. broad scale soil erosion prevention versus more targeted soil erosion mitigation;
2. Assessing the 'triple bottom line' impacts of existing strategies and targets, e.g. improving water quality;
3. Comparing or assessing the impacts of components or actions involved in existing strategies, e.g. changes to irrigation practice, vegetation retention.

 

Socio-economic assessment guidelines for river, groundwater and water management committees
Independent Advisory Committee on Socio-economic Analysis (1998)
http://www.water.nsw.gov.au/ArticleDocuments/34/socio-economic%20guidelines.pdf.aspx

The Guidelines provide River, Groundwater and Water Management Committees with an understanding of how they might carry out a community based socio-economic assessment in the context of the broader water reform process. The framework recommended by the Independent Advisory Committee is designed to assist committees in carrying out socioeconomic assessments in a way which will enhance effective participation in an adaptive process, while ensuring a consistent approach is taken across the State.

 

Socio-economic impact assessment toolkit - A guide to assessing the socio-economic impacts of Marine Protected Areas in Australia
Department of the Environment and Heritage (2005)
http://www.environment.gov.au/coasts/mpa/publications/nrsmpa-seia.html

The toolkit comprises a general guide to undertaking socio-economic impact assessment (SEIA), followed by specific guides to methods and sources of information which can be used in assessing the potential impacts of proposed Marine Protected Areas on these selected sectors. It provides a range of options for assessing social and economic impacts, and advice on appropriate methods for particular situations. It covers methods for assessing direct and indirect impacts. Uses and limitations of each method are included, such as likely cost and time required to implement, and the type of information each method can provide. The toolkit draws on the wide range of methods for SEIA, and presents those most applicable in the MPA context. Each method is outlined but not detailed in-depth due to the ease of accessing methodological information elsewhere.

 

The investment framework for environmental resources (INFFER) approach
www.inffer.org

The Investment Framework for Environmental Resources (INFFER) is a new asset-based approach to natural resource management. The core aim of INFFER is to help investors to achieve the highest value environmental and natural resource outcomes that are possible with the available resources. It covers environmental threats such as water quality decline, salinity, biodiversity decline and pest plant and animals. The approach starts by identifying the environmental assets that may warrant investment and proceeds through a series of steps for each asset: collecting specific information about the asset and its potential management; evaluating the cost effectiveness of investment; and identifying appropriate policy responses. It identifies projects with the best prospects.

The approach is squarely focused on achieving NRM outcomes cost-effectively. INFFER requires environmental managers to be more explicit in identifying the highest-value assets, the threats they face, the degree of current or future damage they face, the technical feasibility of reducing that damage, and the adoptability of relevant works by land managers.

 

Guidelines for preparing economic analysis
United States Environmental Protection Agency (2000)
http://yosemite1.epa.gov/ee/epa/eed.nsf/webpages/Guidelines.html/$file/Guidelines.pdf

The US EPA Guidelines establish a framework for performing economic analyses of environmental regulations and policies. They incorporate recent advances in the field of environmental economics. The Guidelines provide guidance on analysing the economic impacts of regulations and policies, and assessing the distribution of costs and benefits among various segments of the population, with a particular focus on disadvantaged and vulnerable groups.

The Guidelines address:

• Treatment of uncertainty and non-monetary information
• Estimating the value of reducing fatal risks
• Defining baseline conditions (i.e. contrasting the state of the economy and environment with and without a proposed regulatory policy)
• Discounting and comparing differences in the timing of benefits and costs
• Examining environmental justice concerns in economic analyses
• Assessing who pays the costs and receives the benefits of regulations
• Locating available data sources for conducting economic analyses.

 

A Framework for the economic assessment of ecological benefits
United States Environmental Protection Agency (2002)
http://www.epa.gov/osa/spc/pdfs/feaeb3.pdf

The US EPA identified the need for a common approach to analysing ecological benefits and a better understanding of both the scientific and economic techniques used in these analyses. This document is intended to address these needs by:

1. proposing a common framework for the economic analysis of ecological benefits; and
2. discussing the elements of ecological risk assessment and economic benefit analysis.

The goal of the Framework is to provide a structure for conducting benefits assessments for the purpose of informing risk management decisions and to meet risk management objectives. It is most applicable for determining, as part of a benefit cost analysis, the ecological benefits of policies or regulatory actions commonly undertaken by governmental agencies such as the EPA.

 

Use of market based instruments by Catchment Management Authorities in NSW to achieve landscape scale change
Collins D and Whitten S, (2007) Report to the NSW CMA Chairs’ Council, prepared by the BDA Group and CSIRO Sustainable Ecosystems.
http://www.lachlan.cma.nsw.gov.au/download.cfm?DownloadFile=49A03F9B-1708-51EB-A69387EC296A4F10

In this report, a preliminary overview of experiences with Market-Based Instruments (MBIs) for NRM is canvassed, and a framework for the selection of MBIs across differing biophysical, economic and stakeholder contexts is presented. This study was initiated to assist NSW Catchment Management Authorities (CMAs) in their selection and use of MBIs. The objectives of this study were:

1. To provide background on the range and implementation experience of MBIs both in NSW and more broadly;
2. To provide a framework to aid in decisions of when and if to use an MBI, and in selecting an appropriate type of MBI;
3. To identify the institutional environment & CMA organisational capacity to support MBIs; and
4. To recommend an Action Plan to promote more widespread use of MBIs by CMAs and to garner the necessary support from the various levels of government.

A final report documents the findings and recommends an Action Plan to promote more widespread use of MBIs by CMAs.

Social impact assessment frameworks for NRM

Guidebook on social impact assessment
Fenton M, (2005), prepared for the Comprehensive Coastal Assessment by Environment and Behaviour Consultants, Townsville, QLD.
www.ebc.net.au/CCA%20SIA%20Guidebook.pdf

The primary objective of the Guidebook is to provide planners, policy makers and others involved in regional and urban planning with an initial conceptual and applied methodological framework for understanding and undertaking social impact assessments (SIAs). It is not the intention of this Guidebook to address all SIA methods and it does not include a discussion of the many important participatory and consultative techniques and processes that should be an integral part of most SIAs. The Guidebook describes four specific methods useful in a SIA context:

1. Human service provision thresholds,
2. Demographic profiles and social indicators,
3. Place meanings and environmental values, and
4. Network analysis.

The Comprehensive Coastal Assessment process is aimed at providing decision support tools to improve strategic planning, land use, natural resource protection and socio-economic development along the NSW coast and it is within this context the Guidebook on social impact assessment has been developed.

 

International principles for social impact assessment
International Principles for Social Impact Assessment (2003)
http://www.iaia.org/publicdocuments/special-publications/SP2.pdf 

This document serves as a discussion for the impact assessment community. It promulgates a new understanding of Social Impact Assessment (SIA). It is intended that this be available to practitioners around the world. It can provide them with the basis for developing national guidelines in consultation with a range of stakeholders and users in their own countries. By first establishing the core values of the community of practice, then deriving the principles, and only then developing guidelines, can truly appropriate guidelines emerge.

 

Social analysis sourcebook: Incorporating social dimensions into bank-supported projects
The World Bank (2003), Social Development Department

This sourcebook presents a conceptual framework for social analysis and describes how task teams can incorporate its principles into project design, implementation, and monitoring and evaluation. It provides guidance on good practice to improve the quality and impact of social analysis to World Bank supported operations. It is based on the lessons learned from five years of Bank experience (1997-2002) in addressing social dimensions through the use of social assessments to inform project design, and by social development specialists in project preparation and appraisal.

 

Guidelines and principles for social impact assessment
The Interorganizational Committee on Guidelines and Principles for Social Impact Assessment (1994)
http://www.st.nmfs.noaa.gov/tm/spo/spo16.pdf

The purpose of this document is to present the central principles and some operational guidelines for conducting social impact assessments (SIAs). This document is the first systematic and interdisciplinary statement to offer guidelines and principles to assist government agencies and private sector interests in using SIA to make better decisions. These guidelines and standards are equally important for those communities and individuals likely to be affected by proposed actions. We cannot cover over two decades of research on 'social effects'. However, we do provide a broad overview, focusing less on methodological details and more on the guidelines and principles for the preparation of technically and substantively adequate SIAs within reasonable time and resource constraints.

 

US principles and guidelines - Principles and guidelines for social impact assessment in the USA
The Interorganizational Committee on Principles and Guidelines for Social Impact Assessment (2003), Impact Assessment and Project Appraisal, volume 21, number 3, September 2003, Beech Tree Publishing, UK.
http://www.iaia.org/publicdocuments/special-publications/US%20principles%20final%20IAPA%20version.pdf

This document provides guidance for the conduct of social impact assessment (SIA) within the context of the US National Environmental Policy Act of 1970. Guidelines are integrated within six principles focusing on:

1. understanding of local and regional settings;
2. dealing with the key elements of the human environment;
3. using appropriate methods and assumptions;
4. providing quality information for decision making;
5. ensuring that environmental justice issues are addressed;
6. and establishing mechanisms for evaluation/ monitoring and mitigation.

A social impact assessment model is outlined followed by suggested social impact assessment variables. The document concludes with the detailed steps in the SIA process.

 

The Burra Charter (The Australia ICOMOS charter for places of cultural significance)
International Charter for the Conservation and Restoration of Monuments and Sites & the International Council on Monuments and Sites (ICOMOS)
http://australia.icomos.org/wp-content/uploads/BURRA_CHARTER.pdf

The Burra Charter provides guidance for the conservation and management of places of cultural significance (cultural heritage places), and is based on the knowledge and experience of Australia ICOMOS members. The Charter sets a standard of practice for those who provide advice, make decisions about, or undertake works to places of cultural significance, including owners, managers and custodians. The Charter can be applied to all types of places of cultural significance including natural, indigenous and historic places with cultural values. The Charter should be read as a whole as many of its articles are interdependent. 

 

Resilience assessment in social-ecological systems
The Resilience Alliance
http://www.resalliance.org/3871.php

The Resilience Alliance has developed two workbooks for assessing resilience in social-ecological systems:

1. Assessing and managing resilience in social-ecological systems: A practitioner’s workbook, and
2. Assessing resilience in social-ecological systems - A workbook for scientists.

The practitioner's workbook has been developed specifically to provide guidance to people engaged in natural resource management, through a set of activities designed to explore system parameters and management options for their own system of interest from a resilience perspective. A companion volume (Vol. 2) to the workbook for practitioners provides supplementary notes on the key concepts that are included in the assessment.

The Resilience Assessment workbook for Scientists emerged from case-study comparisons of regional SESs in the Resilience Alliance (Walker et al. 2006), and builds on an initial suggested framework (Walker et al. 2002). It is intended as a guide for those familiar with the basic concepts of resilience and systems dynamics.

 

Cultural heritage implications of NRM projects

NRM projects and proposals may involve Aboriginal communities, especially when impacting on Cultural Heritage sites. The following Guidelines help outline how a collaborative approach to social impact assessments might occur.

 

Aboriginal cultural heritage regional studies: an illustrative approach
NSW Department of Environment and Conservation (2006)
http://www.environment.nsw.gov.au/resources/cultureheritage/RegionalStudiesfinal.pdf

This report presents a general approach to conducting an assessment of Aboriginal cultural heritage at a regional scale. The overview provided by a regional assessment helps us understand the relationship between Aboriginal people and the natural environment, the relationship between past and the present, and the relationship between cultural heritage places and the values people give them. A regional assessment gives us an overview of these relationships at a landscape scale. It also provides a context for finer-scale decisions (e.g. site conservation plans, precinct conservation plans and regulatory decisions).

 

Aboriginal cultural heritage standards & guidelines kit
NSW National Parks and Wildlife Service (1997)
http://www.environment.nsw.gov.au/resources/cultureheritage/aboriginalHeritageGuidelinesKitFinal.pdf
The standards and guidelines in this kit are a NPWS initiative to promote predictability, transparency, and best practice in Aboriginal heritage management. While written for heritage practitioners, it is hoped this kit will also prove useful to development proponents who wish to know the standard of work which consultants are expected to produce.

The kit comprises:

1. Guidelines for Aboriginal consultants - aim to clarify for Aboriginal consultants the type of reporting required for heritage assessments.
2. Standards manual for archaeological practice in Aboriginal heritage management - sets out current best practices and encourages archaeological methodology to be relevant to the management context.
3. Guidelines for archaeological survey reporting - set out in detail the requirements of NPWS for survey reports submitted by archaeologists.
4. Guidelines for Aboriginal heritage impact assessment in the exploration & mining Industries - provide industry-specific advice to proponents of exploration and mining ventures.

 

Threatened species recovery planning and Aboriginal involvement
Baker L & English A (2003)
http://www.environment.nsw.gov.au/resources/cultureheritage/aboriginalInvolvementThreatenedSpecies.pdf

The Aboriginal Involvement in Recovery Planning Project had two main aims:

1. to investigate how cultural values can shape, and be respected by, threatened species recovery planning through a case study and general analysis of this planning process, and
2. to provide the NPWS with a Discussion paper which outlines practical steps to embed Aboriginal cultural values into NPWS decision making during future Recovery planning.

This paper provides some background to the project and also summarises key issues associated with the development of cross-cultural approaches to recovery planning in NSW. It is aimed at promoting discussion and to help develop a consistent statewide approach. The project focused on assessing collaborative mechanisms, which will allow ongoing partnerships in this area of planning across NSW.

 

Promoting Aboriginal economic interests in natural resource management in NSW: Perspectives from tropical North Australia and some prospects
Jon Altman (2003), Centre for Aboriginal Economic Policy Research, The Australian National University
http://www.anu.edu.au/caepr/Publications/topical/Natural%20Resource%20Management_Altman_1003.pdf

This paper reviews and comments on some research on sustainable development on Aboriginal owned land in north Australia. It also makes an argument for stronger advocacy of Indigenous economic development issues in NSW - economics has been under-represented in discussions to date. This paper argues that evidence-based research will be essential to demonstrate to all stakeholders that existing levers can deliver practical outcomes. The paper ends with an optimistic envisioning of a new economic deal in NRM and use for Indigenous people in NSW.

 

Sacred natural sites: Guidelines for protected area managers
Wild R & McLeod C (Eds) (2008), Gland, Switzerland: IUCN.
http://data.iucn.org/dbtw-wpd/edocs/PAG-016.pdf

These guidelines focus on the sacred natural sites of indigenous and local communities. These guidelines are provided primarily to assist protected area managers, especially those with sacred sites located within the boundaries of their legally established protected areas. It is hoped that the guidelines will promote cooperation between protected area managers and custodians of sacred sites towards the enhanced conservation of these special places. Rather than full case studies, what we present here are 'snapshots' related to and illustrating, where possible, specific guidelines.

 

Health impact assessment

Health Impact Assessment Guidelines
Commonwealth Department of Health and Aged Care (2001)
http://enhealth.nphp.gov.au/council/pubs/pdf/hia_guidelines.pdf

Health Impact Assessment (HIA) is a process that systematically identifies and examines, both the potential positive and negative health impacts of an activity. These Guidelines specifically address the use of HIA when conducting Environmental Impact Assessment. For proponents the Guidelines will assist understanding of what needs to be done and promote a more balanced approach by ensuring positive impacts are given appropriate consideration. For the wider community HIA can help to ensure our surroundings are best able to enhance health for all into the future. Maximising the economic and other benefits of development while managing the adverse impacts, is an important but often difficult balance to strike. These Guidelines are intended to assist with the achievement of that balance.