Consider effects on other people

H2 Economics - syllabus 9570, 2026

Original teaching notes

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An intended benefit can come with an unintended cost.

A decision can affect people beyond the decision maker. Separate the result an agent aims to achieve from other consequences that may follow. An unintended consequence is not necessarily unforeseeable or harmful; it is simply not the outcome the decision was intended to produce. State a mechanism and identify the affected group instead of listing possible effects without support. Timing and distribution matter: a total improvement can coexist with losses for some people. Considering those effects does not require formal project-appraisal calculations.

Intended effect
The outcome the decision aims to achieve, such as better library access for people who work during the day.
Other consequences
An unintended consequence is a result the decision did not aim to produce. It can still be foreseeable or beneficial; extra evening noise is one possible cost to neighbours.
Distribution
Distribution means who gains and who loses. More library visits overall can coexist with extra disruption for nearby residents, so the total alone does not show that everyone benefits.

Worked example: Extending a community library's hours

A council extends library opening into the evening to improve access for residents who work during the day. Staff report more late shifts; nearby residents report evening noise.

  1. The intended benefit is better access for people unavailable during normal hours. Attendance and user feedback can help examine whether it occurs.
  2. Extra late shifts may affect staff travel, family time or fatigue. These are different considerations from the number of visits.
  3. Noise from evening arrivals can affect neighbours. The council should investigate when and where it occurs rather than assuming every visit creates the same disturbance.
  4. An earlier closing time, revised staffing or quieter access arrangements might reduce the costs, but each alternative has its own effects and constraints. More attendance alone does not prove the original design is best.

Watch out for this

If total attendance increases, everyone must be better off.

An aggregate measure does not show the distribution of benefits and costs. Identify affected groups and the evidence needed for each.

Check your understanding

A new evening service benefits commuters but increases noise for neighbours. Which evaluation is supported?

  1. The service must be cancelled because it has any cost.
  2. Compare the commuter benefit with the disturbance and feasible alternatives.
  3. More users prove every resident benefits.

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