Analysis of the socio-economic effects of the LIFE Kočevsko project

By analysing the economic effects of the LIFE Kočevsko project, we wanted to show that nature conservation projects have not only effects in achieving the objectives of nature conservation, but also in revitalizing the local and regional economy, generating new jobs and creating business opportunities. We analysed the use of project funds and the number of jobs that were created during the project. For the estimation of the impact of the secondary effects (indirect and induced) Input Output analysis has been applied.

Analysis showed that for every 100 EUR of expenditure of the project LIFE Kočevsko stimulated an additional 63,4 EUR of increased economic activity of suppliers and external services in the Slovenian economy (indirect effect). Both direct and indirect effects induced additional 95,0 EUR of output, as a result of the final consumption of households on total economy (induced effect). As much as 62,5% of the total output effect of the project has been generated in the local environment (Kočevsko area).

Within the duration of the project 43,36 direct jobs (project staff) were created. By using employment multipliers, we estimate that the project indirectly supported an additional 12,01 jobs (2,67 per year). As a result of the increased final consumption of households, an additional 24,47 new jobs (5,44 per year) were induced. Overall, we estimate that the project LIFE Kočevsko (direct, indirect and induced effect) supported 79,84 new jobs, whit annual mean of 17,74 jobs.

You can read the entire analysis in the document Assessment of the socio-economic effects of the project actions on the local economy, population and ecosystem functions. 

Prepared by Matic Kozina, ZRSVN