Economic Impact Assessment

Economic impact studies play a critical role in evaluating proposed public and private projects, as well as regulations at the national, state, and local levels. They help inform decision-makers and stakeholders across industries but can often be misapplied or methodologically overstated.

Brattle economists bring the expertise needed to determine when and how to apply economic models – and how to interpret the results – with sound judgment and carefully considered assumptions and framing choices. This approach preserves analytical rigor, objectivity, and credibility, enabling our impact studies to readily withstand critical review and support decision-making in high-stakes settings.

Leveraging our analytical expertise, Brattle economists have developed BEYOND, our proprietary suite of regional impact assessment models covering the US and global economy. Built on open-source government data and academically vetted datasets, BEYOND delivers transparency and clarity in modeling regions, industries, and households.

Representative Engagements

Economic Impacts of Commercial Automobile Tort Costs

For the US Chamber of Commerce Institute of Legal Reform, Brattle experts conducted an analysis to estimate the economic growth that could result from reducing commercial transportation lawsuits. Using the BEYOND model, the study analyzed what would happen if all states reduced their commercial auto tort costs to the levels experienced in the lowest-cost states (as a proportion of revenue), and found that every additional $1 million in tort costs in this space, US GDP would decline by about $2 million; and that over a 10-year period, such a change would increase GDP by an average of $52.3 billion per year, through avoided litigation costs and increased economic activity. Learn more and view the report here.
Economic Impacts of the Inflation Reduction Act’s Clean-Energy Tax Credits

A Brattle team performed an economic analysis of clean energy tax credits and their effects on US investment, electricity rates, economic growth, and jobs through 2035 on behalf of ConservAmerica. Brattle’s analysis explored the economic implications if, within this context, the available Clean Electricity Production Tax Credits (§45Y) and Clean Electricity Investment Tax Credits (§48E) were to be discontinued by Congress. The study used an integrated modeling framework that couples two tools developed by Brattle: BEYOND was used to capture economy-wide impacts of increased electricity prices and changes in power sector investment, and gridSIM, a detailed power sector capacity expansion model, was used to project the tax credits’ impacts on the generation resource mix across the US economy. Learn more and view the report here.
Economic Impacts of Film Industry Tax Credits in Puerto Rico

For the Financial Oversight and Management Board (FOMB) of the Commonwealth of Puerto Rico, Brattle assessed the fiscal impact on Puerto Rico of increasing the annual tax credit cap for the film industry from the current $38 million per annum to $100 million per annum. Using BEYOND, our experts found that the tax revenue the Commonwealth could recover from Puerto Rico’s economy fell short of the costs of tax credits extended to the film industry, worsening the Commonwealth’s fiscal position.
Economic Impacts of New York’s Cap and Invest (NYCI) Plan

On behalf of the Environmental Defense Fund (EDF), Brattle assessed the economy-wide impacts of implementing New York’s Cap and Invest (NYCI) plan, with particular focus on the welfare impacts to disadvantaged communities (DACs). The study used an integrated modeling framework that couples two tools developed by Brattle: BEYOND and gridSIM, a detailed power sector capacity expansion model. gridSIM was used to provide a detailed outlook on the evolution of New York’s generation resource mix and generating units located in or near DACs. BEYOND captured economy-wide impacts of NYCI, including employment, energy use, growth in affected sectors, and consumption and welfare impacts across household income levels. Learn more and view the report here.
Economic Impacts of Adopting Automated Frequency Coordination (AFC) in Saudi Arabia

A Brattle team provided an assessment of economic impacts from enabling standard-power outdoor use of the 6 GHz band through Automated Frequency Coordination in the Kingdom of Saudi Arabia for the Communications Bureau. Using BEYOND, the study estimated that adopting AFC for standard-power operations in the Kingdom would generate an annual economic benefit of USD $790 million–$1 billion per year from 2025–2027, underscoring AFC’s potential to accelerate the expansion of wireless services and its broader contribution to the Kingdom’s economic growth.
Analysis of the Boston 2024 Proposed Summer Olympic Plans

Brattle economists prepared a report for the Commonwealth of Massachusetts’ Office of the Governor of Massachusetts evaluating Boston’s bid to host the 2024 Summer Olympic Games. The report detailed the components of the bid, tested its assumptions to examine potential risks, evaluated who would have borne the responsibility if any adverse risks had been realized, and estimated the potential economic impacts of the Olympic Games on the Commonwealth. Using input-output modeling, the report estimated that pre-Olympic Games expenditures would have generated approximately 29,250 job-years and $5.67 billion of output over the six years leading up to the Olympic Games; and during-Olympic Games expenditures would have generated approximately 30,300 job-years and $4.63 billion of output during the year of the Olympic Games. Learn more and read the report here.
Macroeconomic Impact of Nuclear Plants

Brattle performed evaluations of several key nuclear plants, particularly in states where nuclear is an important generation source. These studies used Brattle’s gridSIM model, in combination with a dynamic economic impact model of the US economy. Studies examined how these plants affect emissions of CO₂ and other pollutants, as well as their effects on electricity prices, investments in electricity-generating resources, and their respective impacts on regional production and consumption activities. Learn more and view the report here.

The BEYOND Model

The BEYOND model is Brattle’s proprietary dynamic computable general equilibrium (CGE) model of the US economy. BEYOND uses open-source government data as model inputs to characterize the economy.

What is computable general equilibrium modeling?

The BEYOND model, like other CGE models, captures the circular and interconnected flow of economic activity: households consume goods and services using the income earned from providing labor and capital to firms; firms produce goods and services and pay wages and capital rent to households using the revenue earned; the government collects taxes from households and businesses to pay for government expenditures and provide subsidies and other public benefits to the economy.

CGE models specify the complexity of these economic interrelationships in mathematical terms and put them together in a way that allows the model to estimate changes in economic variables such as prices, output, demand, and tax revenue resulting from an economic shock or policy change. They do this by seeking quantities and prices at which (1) supply equals demand in every market; (2) the value of total household expenditure equals the value of total income; and (3) the value of firm output equals the value of inputs. CGE models are grounded in a well-established body of economic literature and are generally accepted as the preferred approach for estimating economic impacts.

BEYOND’s national model represents all 50 states and Washington, DC, covering 71 industries and five income-based household groups. Its input data build-stream is based on the Social Accounting Matrix framework developed by the Wisconsin National Data Consortium (WiNDC), a research group that facilitates the creation and documentation of open-source multisectoral economic datasets for US states. BEYOND’s global model uses the Global Trade Analysis Project (GTAP) database to represent 163 countries and regions, and 65 industries. Economic sectors and regions represented in BEYOND can be flexibly configured for each economic impact assessment study.

For more information on Brattle’s BEYOND model and relevant engagements, please contact Managing Energy Associate Wonjun Chang.