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Does European Union Environmental Policy Pass a Cost–Benefit Test?

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  • David Pearce

Abstract

Most European Union countries are committed to some form of regulatory impact assessment, and in some cases these assessments involve the formal use of cost–benefit analysis. The European Treaty of Union also calls for a comparison of costs and benefits for all European regulations. Despite this, only a limited number of regulations have been subject to cost–benefit analysis. Using a variety of sources, this paper investigates whether or not a selection of major environmental regulations would pass a cost–benefit test. The general answer is that, while some do, most do not. This finding has major implications for the efficiency of European environmental legislation, and reflects on the willingness of Member States to sign up to inefficient regulation.

Suggested Citation

  • David Pearce, 2004. "Does European Union Environmental Policy Pass a Cost–Benefit Test?," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 5(3), pages 115-137, July.
  • Handle: RePEc:wej:wldecn:183
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    Cited by:

    1. Lago, Manuel & Moran, Dominic & MacLeod, Michael J., 2006. "Exploring the meaning of disproportionate costs for the practical implementation of the Water Framework Directive," Working Papers 46005, Scottish Agricultural College, Land Economy Research Group.
    2. Cecere, Grazia & Mancinelli, Susanna & Mazzanti, Massimiliano, 2014. "Waste prevention and social preferences: the role of intrinsic and extrinsic motivations," Ecological Economics, Elsevier, vol. 107(C), pages 163-176.
    3. Massimiliano Mazzanti & Anna Montini & Roberto Zoboli, 2006. "Municipal Waste Production, Economic Drivers, and ‘New’ Waste Policies: EKC Evidence from Italian Regional and Provincial Panel Data," Working Papers 2006.155, Fondazione Eni Enrico Mattei.
    4. Jan Zápal, 2006. "Relation between Cyclically Adjusted Budget Balance and Growth Accounting Method of Deriving ‘Net Fiscal Effort’," Working Papers IES 2006/05, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2006.
    5. Massimiliano Mazzanti & Anna Montini & Francesco Nicolli, 2008. "Embedding Landfill Diversion in Economic, Geographical and Policy Settings Panel based evidence from Italy," Working Papers 2008.71, Fondazione Eni Enrico Mattei.

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