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

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  • Krupnick, Alan

    (Resources for the Future)

  • Toman, Michael
  • Kopp, Raymond

    (Resources for the Future)

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

  • Krupnick, Alan & Toman, Michael & Kopp, Raymond, 1997. "Cost-Benefit Analysis and Regulatory Reform: An Assessment of the Science and Art," RFF Working Paper Series dp-97-19, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-97-19
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    Cited by:

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    2. Oriana Gava & Francesca Galli & Fabio Bartolini & Gianluca Brunori, 2018. "Linking Sustainability with Geographical Proximity in Food Supply Chains. An Indicator Selection Framework," Agriculture, MDPI, vol. 8(9), pages 1-22, August.
    3. 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.
    4. Marco Grasso, 2004. "Utilizzo e diffusione della valutazione economica dei beni," Others 0406002, University Library of Munich, Germany.
    5. 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.
    6. Revesz, Richard & Stavins, Robert, 2004. "Environmental Law and Policy," Working Paper Series rwp04-023, Harvard University, John F. Kennedy School of Government.
    7. 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.
    8. 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.
    9. 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.
    10. Toman, Michael, 1998. "Sustainable Decisionmaking: The State of the Art from an Economics Perspective," RFF Working Paper Series dp-98-39, Resources for the Future.
    11. 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.
    12. Roberts, Donna, 1998. "Implementation Of The Wto Agreement On The Application Of Sanitary And Phytosanitary Measures: The First Two Years," Working Papers 14588, International Agricultural Trade Research Consortium.
    13. 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.
    14. 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.
    15. 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.
    16. 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.
    17. 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.
    18. 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.
    19. 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.
    20. 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).
    21. 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.
    22. 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.
    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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