29th July 2026 |
Reports, Research and Analysis
This study was commissioned by the Department of Enterprise, Tourism and Employment to review and evaluate the estimation of deadweight used within the Economic Appraisal Model (EAM) applied by the enterprise agencies, Enterprise Ireland and IDA Ireland.
Deadweight occurs when public expenditure is incurred to achieve benefits which would have been achieved in the absence of the project being so funded. It is the proportion of supported activity that would have occurred in the absence of grant aid. Deadweight reduces net additionality and value for money and therefore affects the credibility of appraisal outputs and the calibration of EAM parameters.
The primary aim of the study was to provide a robust evidence base that would support a better understanding and assessment of deadweight in the EAM. The findings from the research will be used to guide future changes in deadweight in the EAM and inform the development of a cost-benefit analysis (CBA) model for environmental aid.