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Cost Benefit Analysis of Industrial Noise Regulation

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  • Stephen Holland
  • Jean Cross

Abstract

This paper examines the application of the techniques of economic analysis to occupational health and safety regulations using occupational noise as an example. The paper explores the extent to which economic impact studies are practically feasible and useful in relation to occupational health and safety legislation. Six studies of the same regulatory change, from four countries were analysed. The results of these studies ranged from a strongly negative to a significantly positive net present value, depending on the assumptions made. The factor which had the greatest influence on these differences was the way in which benefits are costed. It is shown that in the field of Occupational Health and Safety, economic analysis does not produce a single valid net present value or benefit to cost ratio on which a decision to legislate can sensibly be based. However the analysis can, if properly directed provide useful information on factors which will enable organisations to optimise their response to the regulation and authorities to introduce regulations in a way which does not bear with unreasonable weight on specific sectors of the community.

Suggested Citation

  • Stephen Holland & Jean Cross, 1995. "Cost Benefit Analysis of Industrial Noise Regulation," The Economic and Labour Relations Review, , vol. 6(1), pages 105-124, June.
    • Handle: RePEc:sae:ecolab:v:6:y:1995:i:1:p:105-124
    DOI: 10.1177/103530469500600108
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    Cited by:

    1. Kaicheng Shen & Chen Cheng & Xiaodong Li & Zhihui Zhang, 2019. "Environmental Cost-Benefit Analysis of Prefabricated Public Housing in Beijing," Sustainability, MDPI, vol. 11(1), pages 1-21, January.

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