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Cost-Benefit Analysis and Regulatory Reform: An Assessment of the Science and the Art

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  • Kopp, Raymond J.
  • Krupnick, Alan J.
  • Toman, Michael

Abstract

The continuing efforts in the 104th Congress to legislate requirements for cost-benefit analysis (CBA) and the revised Office of Management and Budget guidelines for the conduct of such assessments during a regulatory rulemaking process highlight the need for a comprehensive examination of the role that CBA can play in agency decision-making. This paper summarizes the state of knowledge regarding CBA and offers suggestions for improvement in its use, especially in the context of environmental regulations.

Suggested Citation

  • Kopp, Raymond J. & Krupnick, Alan J. & Toman, Michael, 1997. "Cost-Benefit Analysis and Regulatory Reform: An Assessment of the Science and the Art," Discussion Papers 10851, Resources for the Future.
    • Handle: RePEc:ags:rffdps:10851
    DOI: 10.22004/ag.econ.10851
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    3. Bo-Young Heo & Won-Ho Heo, 2019. "Economic Analysis of Disaster Management Investment Effectiveness in Korea," Sustainability, MDPI, vol. 11(11), pages 1-13, May.
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    5. Jennifer Mckay & Anthony Moeller, 2001. "Duty and Standards of Care for Drinking Water Regulation in Australia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 3(2), pages 127-143, June.
    6. Pence, Justin & Abolhelm, Marzieh & Mohaghegh, Zahra & Reihani, Seyed & Ertem, Mehmet & Kee, Ernie, 2018. "Methodology to evaluate the monetary benefit of Probabilistic Risk Assessment by modeling the net value of Risk-Informed Applications at nuclear power plants," Reliability Engineering and System Safety, Elsevier, vol. 175(C), pages 171-182.
    7. Marco Grasso, 2004. "Utilizzo e diffusione della valutazione economica dei beni," Others 0406002, University Library of Munich, Germany.
    8. Zhang, Da & Tang, Songlin & Lin, Bao & Liu, Zhen & Zhang, Xiliang & Zhang, Danwei, 2012. "Co-benefit of polycrystalline large-scale photovoltaic power in China," Energy, Elsevier, vol. 41(1), pages 436-442.
    9. Georgopoulou, E. & Sarafidis, Y. & Mirasgedis, S. & Balaras, C.A. & Gaglia, A. & Lalas, D.P., 2006. "Evaluating the need for economic support policies in promoting greenhouse gas emission reduction measures in the building sector: The case of Greece," Energy Policy, Elsevier, vol. 34(15), pages 2012-2031, October.
    10. Ian Bateman & Amii Harwood & David Abson & Barnaby Andrews & Andrew Crowe & Steve Dugdale & Carlo Fezzi & Jo Foden & David Hadley & Roy Haines-Young & Mark Hulme & Andreas Kontoleon & Paul Munday & Un, 2014. "Economic Analysis for the UK National Ecosystem Assessment: Synthesis and Scenario Valuation of Changes in Ecosystem Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(2), pages 273-297, February.
    11. Burtraw, Dallas & Krupnick, Alan, 1999. "Measuring the Value of Health Improvements from Great Lakes Cleanup," RFF Working Paper Series dp-99-34, Resources for the Future.
    12. Jan Anne Annema & Carl Koopmans & Bert Van Wee, 2006. "Evaluating Transport Infrastructure Investments: The Dutch Experience with a Standardized Approach," Transport Reviews, Taylor & Francis Journals, vol. 27(2), pages 125-150, June.
    13. Revesz, Richard & Stavins, Robert, 2004. "Environmental Law and Policy," Working Paper Series rwp04-023, Harvard University, John F. Kennedy School of Government.
    14. David Ocio & Christian Stocker & Ángel Eraso & Arantza Martínez & José Galdeano, 2016. "Towards a reliable and cost-efficient flood risk management: the case of the Basque Country (Spain)," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 81(1), pages 617-639, March.
    15. Linacre, Nicholas A. & Gaskell, Joanne & Rosegrant, Mark W. & Falck-Zepeda, José & Quemada, Hector & Halsey, Mark & Birner, Regina, 2005. "Analysis for biotechnology innovations using Strategic Environmental Assessment (SEA):," EPTD discussion papers 140, International Food Policy Research Institute (IFPRI).
    16. Nathalie de Marcellis-Warin & Ingrid Peignier & Bernard Sinclair-Desgagné, 2002. "Analyse économique du Risk Management Program (section 112® du « Clean Air Act »)," CIRANO Project Reports 2002rp-12, CIRANO.
    17. Heidi Peterson, 2023. "Cost–Benefit Analysis (CBA) or the Highway? An Alternative Road to Investigating the Value for Money of International Development Research," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(2), pages 260-280, April.
    18. Frank van Tongeren & John Beghin & Stéphane Marette, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," OECD Food, Agriculture and Fisheries Papers 21, OECD Publishing.
    19. Kousky, Carolyn & Lingle, Brett & Ritchie, Liesel & Tierney, Kathleen, 2017. "Social Return on Investment Analysis and Its Applicability to Community Preparedness Activities: Calculating Costs and Returns," RFF Working Paper Series 17-12, Resources for the Future.
    20. Oriana Gava & Fabio Bartolini & Francesca Venturi & Gianluca Brunori & Angela Zinnai & Alberto Pardossi, 2018. "A Reflection of the Use of the Life Cycle Assessment Tool for Agri-Food Sustainability," Sustainability, MDPI, vol. 11(1), pages 1-16, December.
    21. Toman, Michael, 1998. "Sustainable Decision-making: The State of the Art from an Economics Perspective," Discussion Papers 10602, Resources for the Future.
    22. Easter, K. William & Archibald, Sandra O., 1998. "Benefit-Cost Analysis In U.S. Environmental Regulatory Decisions," Conference Papers 14475, University of Minnesota, Center for International Food and Agricultural Policy.
    23. Y. Sarafidis & S. Mirasgedis & E. Georgopoulou & D. P. Lalas, 2002. "Economic Evaluation of Carbon Dioxide Emission Abatement Measures in the Greek Energy Sector," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 45(2), pages 181-198.
    24. Ramadhan, Mohammad & Naseeb, Adel, 2011. "The cost benefit analysis of implementing photovoltaic solar system in the state of Kuwait," Renewable Energy, Elsevier, vol. 36(4), pages 1272-1276.

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