Discussion Paper

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

Jan 1, 1997 | Raymond J. Kopp, Alan J. Krupnick, Michael A. Toman

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.