A benefit is the value or utility obtained from an activity, related to a specified time period or product. Benefits are the positive gains or improvements in wellbeing that result from economic activities, production processes, or the use of products and services.
Benefits can be divided into two categories. The first is revenue, which represents the income generated from the sale of product outputs. This is the direct financial return that accrues to the economic actor conducting the activity. The second covers external benefits, which are positive externalities that create gains in wellbeing for other economic actors or society at large without being captured in market transactions or prices. Examples of external benefits include improved public health from cleaner air, enhanced ecosystem services from sustainable land management, or increased knowledge from research and development activities.
The sum of revenue and external benefits constitutes the social benefit of an economic activity. Understanding the full scope of social benefits matters for sustainability assessment and cost-benefit analysis, as it captures value created beyond what conventional economic accounting records. This allows more informed decisions that account for both market and non-market contributions to wellbeing.
As Chief Operating Officer, Iris leads our organisational development and oversees day-to-day operations. Before joining 2-0, she worked in the biotechnology sector. As an LCA consultant, Iris has devoted her expertise primarily to the domains of sustainable agriculture and food production. She is dedicated to teaching LCA and is responsible for our educational efforts. Iris holds an M.Sc. in Biology – Biotechnology from the University of Copenhagen.
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Glossary terms are clearer once you have seen them applied. Our guide to what LCA is and how it works walks through the complete methodology: goal and scope, inventory modelling, impact assessment, and interpretation.
If you are working on an LCA study and want it done properly, see how we approach life cycle assessment.
