Evaluation is a pre-requisite to the optimal use of resources
Evaluation makes continouslearning and future improvements possible
Evaluation requires expertise, innovation and independence
To ensure the efficiency of projects and public policies, evaluation is necessary at every step:
Before: to objectify social, environmental and economic value creation, prioritize investments and ensure that project are optimally scaled.
During: to pilot projects and public policies and redirect them if necessary.
After: to assess performance, communicate and scale up.
Evaluation is a “deliberation on what value is made of” (Patrick Viveret, Vivre à la Bonne Heure, 2014).
An overview of evaluation methodologies
A variety of methodologies can be leveraged to evaluate projects and public policies according to their specificities.
Socio-economic impact studies:
Definition: quantitative evaluation of the utility of projects and public policies, i.e. their creation of collective value net of costs.
This method allows all social, environmental, economic and financial impacts of a project or public policy to be measured in a monetary unit.
The socio-economic impact methodology is the most complete method. It is scientifically robust and continues to enrich many research fields, including at CITIZING.
Public policy evaluation and the causal effect:
Definition: a quantitative method, it is based on econometric techniques and allows causal links between a public policy and an impact to be drawn.
Scientifically robust, causal effect studies are complementary to socio-economic impact studies.
Definition: analysis of the consistency of a project or public policy with its initial strategy, as well as its effectiveness and efficiency. This analysis is carried out with qualitative and/or quantitative indicators, but is not translated into monetary terms.
Based on the creation of key performance indicators (KPIs), this approach does not allow different projects to be compared, or to establish whether a project or a public policy is at the origin of a collective value creation.
Economic contribution analysis:
Definition: estimation a project or public policies’ creation of economic value.
Centered around economic effects – notably production (GDP) and employment -, this approach is less sound on social and environmental value evaluation.
The economic contribution method promotes mainly high investment projects, and does not account for potential value destruction.
Socio-economic impact studies
Proficient in all four evaluation methods, CITIZING’s expertise lies in socio-economic impact studies.
CITIZING’s know-how in measuring and monetizing impacts stems from a highly innovative process, combining academic and operational skills.
Why study your socio-economic impact?
To convince of the usefulness of projects or redirect projects if necessary;
To prioritise project choice and guide decisions;
To communicate to your stakeholders;
To obtain funding.
Who are socio-economic impact studies for?
Public organisations (ministries, public establishments, regional/local authorities);
Banks and responsible investors;
Private companies holding public service delegations;
Private companies engaged in a corporate social responsibility (CSR) process;
Strategic marketing departments.
Socio-economic impact studies measure and monetize the economic, social, environmental and financial costs and benefits, for all stakeholders, of a project or public policy over its lifetime.
By translating the costs and benefits into a monetary unit, socio-economic evaluation allows the following indicators to be derived:
the net creation of collective value (socio-economic NDV)
the socio-economic return
the collective value per euro invested (socio-economic ROI)
Reference values, academic article extrapolation and contingent valuation studies can all be used to translate the costs and benefits into monetary terms.
Some examples of costs and benefits monetized by CITIZING
Attractiveness gains for a shopping mall, induced by an environmentally-friendly innovation : 500k€ per year
Security and conviviality gains, induced by landscaping work in the area around a school: 587K€ per year
Avoided cost of recidivism, induced by a prison renovation : 41 M€
Benefits for agriculture of a weather forecast supercalculator : 4,5 M€
Reduction of time spent cruising for a parking spot, induced by a mobility policy : 2,9 M€