NEPA ECONOMIC IMPACT MODEL

Economic Impact Models by County

The Northeastern Pennsylvania Alliance has available to members of a Users Network, a model that calculates the economic impact of existing or new projects in the region. To clarify the results of the impact model, the definitions of direct impact, indirect impacts, induced impacts, total impacts, output and personal income are presented here.

Direct impacts consist of permanent jobs, wages and output of the project company itself, construction or tourism.

Indirect impacts are the jobs, wages and output created by businesses, which provide goods and services essential to the construction of the project or to the company. They are also referred to as "supplier" impacts. These businesses range from manufacturers (who make goods) to wholesalers (who deliver goods) to janitorial firms who clean the buildings.

Induced impacts are the spending of the wages and salaries of the direct and indirect employees on items such as food, housing, transportation and medical services. This spending creates induced employment in all sectors of the economy.
Induced impacts are also commonly referred to as "consumer" impacts.

Total impact are the summation of the direct, indirect and induced impacts. Personal income or earnings and wages, refers to the total wage and salary payments as well as benefits including health and life insurance, retirement payments and any other such non-cash compensation.

Finally, output, also referred to as sales or economic activity relates to the gross receipts for goods and services generated by the company's operations. CLICK HERE to view the total number of jobs, along with the amount of personal income and output that the models calculated for economic development projects in each of the seven counties during fiscal year 2002 and 2003. These amounts are based on the operation of the facility only. Economic impacts can also be determined in construction of facilities and these impacts are temporary in nature and for tourist attractions.

Program Contact:

Steve Zaricki
szaricki@nepa-alliance.org