What do economic appraisals consider in terms of societal impact?

Economic appraisals aim to evaluate the broader societal impacts of projects or initiatives, going beyond mere financial benefits to an organization. When considering societal impact, environmental costs play a crucial role. These costs reflect the negative externalities associated with a project, such as pollution, resource depletion, and effects on biodiversity.

Including environmental costs in economic appraisals helps to ensure that decision-makers consider long-term sustainability and the well-being of the community and ecosystem. By factoring in these costs, appraisals can guide investments that not only deliver economic benefits but also promote social equity and environmental stewardship.

Other aspects like personal financial benefits, opportunity costs, or company profitability do not capture the wider societal implications that are necessary for a comprehensive understanding of a project’s impact. While these might be relevant to specific stakeholders, they don't provide the holistic view required when assessing how a project will affect society at large.