What is an economic impact analysis?
Economic impact analysis is an assessment of the effects of a policy, regulation, or other industry shock on the affected industry and associated businesses and individuals. An impact analysis can express outputs in terms of industry revenue, land fallowing, economic value-added, jobs, income, and changes in regional tax base. At ERA Economics, we tailor the economic impact analysis to the needs of our client and the target audience.
We work with both private clients and public agencies to prepare impact analyses. Typically, private clients are the businesses affected by a proposed policy change or new regulation, while public agencies are developing the new policy or regulation. No matter who we work for, we are firmly committed to applying economic analysis to inform better outcomes that protect our agricultural industry and water resources.
When is an impact analysis needed?
In California, economic impact analyses are required for new state and federal regulations. California law requires that an agency provide an assessment of the fiscal impacts its regulations would have on state and local governments and assess the potential economic impact on state businesses and individuals. The rulemaking agency must summarize the results using Standard Form 399, Economic and Fiscal Impact Statement (STD 399). Regulations with an estimated impact of greater than $50 million are Major Regulations, and require the agency to prepare a Standardized Regulatory Impact Assessment (SRIA). Economic and Fiscal Impact Analyses and Standardized Regulatory Impact Assessments are required to address specific impacts, including effects on businesses and individuals and where there are other, lower-cost alternatives to the proposed regulation.
Do you need help with regulatory impact analysis?
We have substantial experience with preparing economic and fiscal impact analyses under California’s rulemaking process, and the firm continues to expand its expertise in this area.
- Stephen Hatchett has prepared economic and fiscal impact analyses for successful rulemakings by three California state agencies in recent years. He has also helped prepare the full set of rulemaking documents for one of those clients, including regulatory text, Statements of Reasons, notices, mailing statements, informative digest, comment responses, and STD 399.
- Harry Ferdon has led the analysis and preparation of economic and financial impact summary materials for rulemaking. This includes preparation of STD 399, and Economic and Fiscal Impact Analyses for prior and ongoing rulemaking processes.
- Duncan MacEwan has managed the preparation of two recent Standardized Regulatory Impact Assessments (SRIAs), including preparation of STD 399 and DF 131 forms, and prepared several economic and fiscal impact analyses for regulations that are not Major Regulations.
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