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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. Jan Zápal, 2007. "The Relation Between the Cyclically Adjusted Budget Balance and the Growth Accounting Method of Deriving Net Fiscal Effort," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 1(3), pages 324-334, November.
    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. Mazzanti, Massimiliano & Montini, Anna & Zoboli, Roberto, 2006. "Municipal Waste Production, Economic Drivers, and 'New' Waste Policies: EKC Evidence from Italian Regional and Provincial Panel Data," Climate Change Modelling and Policy Working Papers 12053, Fondazione Eni Enrico Mattei (FEEM).
    4. Mazzanti, Massimiliano & Montini, Anna & Nicolli, Francesco, 2008. "Embedding Landfill Diversion in Economic, Geographical and Policy Settings Panel based evidence from Italy," Sustainability Indicators and Environmental Valuation Working Papers 44221, Fondazione Eni Enrico Mattei (FEEM).
    5. Richard S. J. Tol, 2021. "Europe’s Climate Target for 2050: An Assessment," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(6), pages 330-335, November.
    6. Dieter Helm, 2005. "Economic Instruments and Environmental Policy," The Economic and Social Review, Economic and Social Studies, vol. 36(3), pages 205-228.

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