InsideEPA: "OMB's Draft Cost-Benefit Guide Likely to Bolster Climate Mitigation Rules"
Billy Pizer, RFF's Vice President for Research and Policy Engagement, provides insights on the Office of Management and Budget's new proposed guidance.
As part of those changes, OMB proposes a major shift in how federal agencies account for the effects of rules on capital investment, replacing its existing reliance on a 7 percent discount rate that has the effect of essentially ignoring benefits of GHG controls when they occur far in the future, Resources for the Future (RFF) economist Billy Pizer tells Inside EPA’s Climate Extra.
More broadly, Pizer calls the proposed guidance -- which also includes new approaches to equity and distributional effects of regulations -- “the biggest proposed change I have observed since we started requiring cost-benefit analysis in the 1960s.”
[Read the article for more of Pizer's insights.]
