Reforming Regulatory Impact Analysis Book

Over the past few decades, considerable debate has emerged surrounding the use of cost-benefit analysis (CBA) to analyze and make recommendations for environmental and safety regulations. Largely absent, however, have been practical questions about how the use CBA could be improved. This new work from Resources for the Future brings together experts representing both sides of the debate to analyze the use of CBA in three key case studies: the Clean Air Interstate Rule, the Clean Air Mercury Rule, and the Cooling Water Intake Structure Rule (Phase II). Each of the case studies is accompanied by critiques from both an opponent and a proponent of CBA and includes consideration of complementary analyses which could have been employed. The work's editors two CBA supporters and one CBA critic conclude the report by offering 14 concrete recommendations for improving the use of CBA, focusing on five areas: technical quality of the analyses, relevance to the agency decision-making process, transparency of the analyses, treatment of new scientific findings, and balance in both the analyses and associated processes, including the treatment of distributional consequences. Resting on the assumption that CBA will remain an important component in the regulatory process, this new report offers those involved in regulatory policy vital practical advice for improving the framework.Read More