E.5.3 Evaluating Costs and Benefits (Evaluation)
Economic Growth vs. Ecological Damage and Social Disruption
The Balancing Act
In today's rapidly developing world, one of the most crucial challenges we face is balancing economic growth with environmental and social sustainability. Let's break this down into digestible pieces.
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Economic Benefits vs Environmental Costs
Economic Benefits
- Job creation and increased income levels
- Improved infrastructure and public services
- Enhanced technological innovation
- Better healthcare and education access
Environmental Costs
- Deforestation and habitat destruction
- Air and water pollution
- Soil degradation
- Loss of biodiversity
- Climate change impacts
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- Benefits: Generates clean hydroelectric power for millions and controls flooding
- Costs: Displaced 1.3 million people and destroyed critical ecosystems
Social Impacts
Positive Impacts
- Higher standard of living
- Better access to education
- Improved healthcare facilities
- Enhanced social mobility
Negative Impacts
- Community displacement
- Cultural erosion
- Income inequality
- Health issues from pollution
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Hosting Events vs Legacy Benefits
Initial Costs
Infrastructure Investment
- Stadium construction
- Transportation upgrades
- Accommodation facilities
- Security systems
Operational Costs
- Event management
- Security personnel
- Marketing and promotion
- Facility maintenance
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Legacy Benefits
Tourism and Economic Impact
- Increased international visibility
- Long-term tourism growth
- Business opportunities
- Job creation
Infrastructure Legacy
- Improved public transport
- Modern sporting facilities
- Enhanced urban development
- Better public spaces
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- Initial Cost: £9 billion
- Legacy Benefits:
- Regeneration of East London
- Improved transport infrastructure
- Conversion of Olympic Village to affordable housing
- Sustained tourism increase
Evaluation Methods
Cost-Benefit Analysis Framework
- Identify all costs and benefits
- Quantify in monetary terms where possible
- Consider time value of money
- Account for externalities
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Key Metrics for Evaluation
- Return on Investment (ROI)
- Social Return on Investment (SROI)
- Environmental Impact Assessment (EIA)
- Legacy Value Assessment
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Sustainability Considerations
Environmental Sustainability
- Resource efficiency
- Waste management
- Carbon footprint
- Ecosystem protection
Social Sustainability
- Community involvement
- Cultural preservation
- Social equity
- Public health impacts
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This evaluation framework helps decision-makers understand the full spectrum of impacts and make more informed choices about development projects and event hosting opportunities.
