Economic impact of the Active Economy

Researchers at the University of Pittsburgh found that the Active Economy generates significant economic and social value for the region. Economic Impact was evaluated over a 20-year time horizon (2016 to 2036).

$840M

Gross Regional Product

6,640

job-years

$137M

Social Return on Investment

The Key Insights

Three key insights emerged from the research. Together they support the report’s central argument: that the region has been underestimating what community-led development contributes to its economic future — and should plan, prioritize, and resource accordingly.

  1. Comparable Value, Far Less Subsidy and Risk

    Active Economy projects generate jobs at a third of the cost of corporate megaprojects, while avoiding many of the associated risks.

  2. Diversification beats Boom and Bust

    When single-site corporate projects collapse, they take jobs and wealth with them. Diversified Active Economy clusters spread risk, promote community ownership, and circulate more money locally.

  3. Social Value adds to Economic Value

    As demonstrated across eleven measured pathways, for every $1,000 of economic impact generated by the Active Economy, an additional $163 of added social value is created for local communities.

Aerial view of a Pittsburgh rowhouse neighborhood with the downtown skyline and river beyond

Economic impact Over Time

Researchers at the University of Pittsburgh calculated the economic impact of the Active Economy Portfolio using three standard metrics: Job-Years, Gross Regional Product, and Output. A 20-year time horizon was considered, ranging from 2016 to 2036.

6,640

job-years of employment sustained by the
Active Economy portfolio, past and future.

Past (Cumulative 10-year)

388

Current (Annual)

82

Future (One Time)

366

Future (Annual)

567

Comparing the Active Economy Portfolio to Corporate Megaprojects

Research suggests that 75% or more of disclosed state and local subsidy dollars go to large corporations. Due to the cost of megadeal projects, the public often assumes that such public subsidies generate an outsized return on the incentives received.
But what do the data really show?

Cumulative Economic Impact by Sector

Taken together, these sector clusters represent a coordinated model for place-based development in some of Southwestern Pennsylvania’s most disinvested — and therefore most disadvantaged — communities. Projects within the portfolio are strategically integrated across multiple sectors.

For example, the real estate development of a vacant commercial building can also provide small business space, workforce training, and energy production simultaneously. The projected cluster values below represent total GRP plus SROI over the 20-year research period. Each project represents multiple sectors, demonstrating the overlapping interdependence and compounding impact of the Active Economy model.

Real Estate Development$769.7M
Creative Industries$131.7M
Active Mobility$20.0M
Small Business & Workforce$509.6M
Energy Production & Efficiency$168.1M
Food & Nature-Based Infrastructure$169.1M

SROI Details
by Cluster

Real Estate Development

The social benefits generated by this cluster arrive principally through blight abatement and real estate recovery.

1 / 6

The social benefits generated by this cluster arrive principally through blight abatement and real estate recovery.

Projects in this cluster are projected to produce $100.7 million in total social value over 20 years, including blight abatement, property appreciation, and other monetized activities.

Small Business & Workforce

The social benefits generated by this cluster arrive principally through increases in participants’ long-term earnings and the family stability such earnings make possible.

2 / 6

The social benefits generated by this cluster arrive principally through increases in participants’ long-term earnings and the family stability such earnings make possible.

Projects in this cluster are projected to produce $68.7 million in total social value over 20 years, including business incubation, workforce development, and other monetized activities.

Energy

The social benefits generated by this cluster arrive through the collective offsetting of greenhouse gas emissions and the improvement of public health that follows from cleaner air.

3 / 6

The social benefits generated by this cluster arrive through the collective offsetting of greenhouse gas emissions and the improvement of public health that follows from cleaner air.

Projects in this cluster are projected to produce $66 million in total social value over 20 years, including 4,520 megawatt-hours of solar energy, 1,775 metric tons of CO2 avoided, and other monetized activities.

Food & Nature-Based Infrastructure

The social value generated by this cluster arrives principally through expanded food access and the public health costs such access averts.

4 / 6

The social value generated by this cluster arrives principally through expanded food access and the public health costs such access averts.

Projects in this cluster are projected to produce $35.6 million in total social value over 20 years through food distribution, nature-based infrastructure, and other monetized activities.

Creative Industries

The social value generated by this cluster arrives through art and media production, community programming, and education.

5 / 6

The social value generated by this cluster arrives through art and media production, community programming, and education.

Projects in this cluster are projected to produce $43.5 million in total social value over 20 years through art and media production, community programs, education, and other monetized activities.

Active Mobility

The social value generated by this cluster arrives through safety benefits, health impacts, transportation cost savings, and increased property values.

6 / 6

The social value generated by this cluster arrives through safety benefits, health impacts, transportation cost savings, and increased property values.

Projects in this cluster are projected to produce $16.1 million in total social value over 20 years through safety, health, transportation access, property appreciation, and other monetized activities.

Social Value Across Eleven SROI Metrics

Combining past and projected activity yields the cumulative SROI figures at right, covering all activity between 2016 and 2036 as measured across eleven SROI metrics that appear in many of the portfolio's projects.

$3.45M

Value of Blight Abatement

4.52MkWh

kWh of Renewable Electricity Produced

1,775t CO₂

CO₂ Emissions Avoided

$1.77M

Value of Art & Culture Produced

$20.77M

Value of Workforce Development Programs

$6.41M

Value of Volunteer Hours Donated

$8.92M

Value of Property Appreciation

$1.20M

Savings from Renewable Energy & Efficiency Programs

$23.22M

Value of Produce Grown or Saved

$15.72M

Value of Community Education + Programs

$37.46M

Value of Business Incubation Programs

Business incubation, produce grown or rescued, and workforce development together account for more than 60% of the portfolio's monetized social value. Not one of them is the sort of outcome a conventional impact study would think to count.

Report methodology and frameworks

Impact is measured along two independent tracks so readers can weigh economic throughput and social return on their own terms. Every figure in this report is traceable to one of the frameworks below — no composite scores, no proprietary adjustments.

Both approaches are presented together because projects with modest economic footprints may carry a high SROI — and vice versa. Pairing them gives the most complete picture of value created.

Read more about SROI

Framework A

REMI Transight

A dynamic regional economic model that captures the traditional footprint of EIR activity — jobs supported, gross regional product, and industry output — across direct, indirect, and induced channels. We run scenarios against a counterfactual baseline and report only the incremental change.

Key question

What economic activity does this create?

What is counted
Jobs, economic output, regional income.
Strengths
Standardized; easy to compare across projects.
Limitations
Misses social and environmental value; can understate small programs.

Framework B

SROI

Social Return on Investment monetises the outcomes that markets tend to miss — wellbeing, environmental stewardship, community capacity. Each outcome is valued using published financial proxies, discounted for deadweight and attribution, and reported as a ratio against invested capital.

Key question

What value does this create for people and communities?

What is counted
Social, environmental, and quality-of-life outcomes.
Strengths
Captures non-market value; reflects real community priorities.
Limitations
Requires assumptions; less standardized across studies.

Outcomes monetised

Workforce earnings

Blight abatement

Food access

Carbon & energy

Active transport

Arts & programming