Thursday, June 2, 2011

A Better Approach to Environmental Regulation: Getting the Costs and Benefits Right
Abstract: Cost-benefit analysis of environmental regulation plays a key role in determining how to achieve our environmental goals without imposing unnecessary costs on the economy. This paper proposes three reforms that address several problems that undermine the role played by cost-benefit analysis in environmental regulation. First, agencies should be required to use a checklist of good empirical practices and should promote decentralized evaluations of data and research. Second, absent compelling systematic evidence to the contrary, agencies should presume that consumers are best able to make their own energy-saving decisions, and should focus on regulations that address the harm that people impose on others. Third, a six-month early regulatory review process should be established for particularly important regulations to allow sufficient time for a thorough cost-benefit analysis and the incorporation of the results into the final regulations.

Read the full discussion paperRead the brief
by Ted Gayer, Co-Director, Economic Studies
The Brookings Institution May 2011

Related Content:
A Strategy for America’s Energy Future: Illuminating Energy’s Full Costs by Michael Greenstone and Adam Looney; May, 2011
Promoting Clean Energy in the American Power Sector by Joseph E. Aldy; May, 2011
An Energy Technology Corporation Will Improve the Federal Government’s Efforts to Accelerate Energy Innovation by John M. Deutch; May, 2011

No comments:

Post a Comment