Spillover Effects

Spillover effects occur when an event, policy, or activity in one area influences outcomes in another, often unintended, area. For example, a new factory might boost local employment (positive spillover), but also increase traffic and pollution in nearby neighborhoods (negative spillover). These effects happen beyond the original focus and can impact communities, economies, or environments in both beneficial and adverse ways. Understanding spillover effects helps policymakers and organizations anticipate broader impacts and make more informed decisions.