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Socio-Economic Analysis for REACH Authorisation

Lipiec 2012

Webinar co-organized by ChemicalWatch and ChemAdvocacy

Marta Stryszowska from Microeconomix gave a presentation in the webinar organized by CHEMICALWATCH and ChemAdvocacy, a joint venture between CEHTRA, ChemService and Microeconomix. She discussed various aspects of the Socio-Economic Analysis (SEA) for REACH Authorisation.

A REACH authorisation request may include a SEA, which entails comparing the environmental and health risks of the continued use of the hazardous substance with the associated economic benefits. This methodology weights health and environmental impacts against economic benefits. Identified health and environmental risks are translated into monetary terms, using various approaches (such as disability or quality adjusted years, value of a statistical life, willingness to pay, etc.). The valuated health and environmental impacts are compared to the identified economic effects (cost changes, demand adjustments, employment and trade levels, etc.). If the latter effects exceed the former effects, an user of the hazardous substance may receive an authorisation for the specific use of the substance.

The quality of SEA depends on the quality of the collected data. Conducting SEA may require collecting data from competitors, clients and/or suppliers. Parties willing to apply for an authorisation may need to ask external consultants to help them to collect the data without violating the competition law.

The goal of the presentation is be to discuss various stages of SEA and briefly sketch various methods used to undertake these stages:

  • Various stages of SEA process
  • The existing tools to conduct SEA
  • Importance of the proper definition of the ‘applied for use’ scenario and ‘non-use’ scenario
  • Importance of good understanding of economic interdependencies along the supply chain
  • Possibilities of using the existing literature and data to conduct SEA vs. potential necessity to conduct independent data collection and impact assessment


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