Environmental Impact Assessment has gained a prominent position as a tool to evaluate the environmental effects of economic activities. However, all approaches proposed so far use a burden‐oriented logic. They concentrate on the different environmental impacts in order to ascertain the overall environmental damage caused by economic activity. This paper argues that such a burden‐oriented view is (a) hampered by a series of methodological shortcomings which hinders its widespread use in practice; and (b) is analytically incomplete. The paper proposes a value‐oriented approach to impact assessment. For this purpose an economic analysis of the optimal use of environmental and social resources is conducted from both a burden‐oriented and a value‐oriented standpoint. The basic logic of a value‐oriented impact assessment is explained, as well as the resulting economic conditions for an optimal use of resources. In addition, it is shown that value‐ and burden‐oriented approaches are complementary to achieve optimality. Finally, the paper discusses the conditions under which the use of burden‐ or value‐oriented impact assessments is appropriate, respectively.