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Canada's federal regulatory policy contains mandatory requirements that departments and agencies, before sponsoring a regulation, must show that regulation is the best alternative and that the regulatory program is structured to maximise the gains to beneficiaries in relation to costs to Canadians. This document is a guide to the use of cost benefit analysis for demonstrating that a proposed regulation maximises net benefit. It reviews how cost benefit analysis fits into the regulatory process, provides a framework for choosing regulatory and non-regulatory alternatives, and describes the type and level of analysis that must be completed before preparing Regulatory Impact Analysis Statements. The guide ends with sections on evaluating impacts to business, consumer impact assessment, evaluation of risk and uncertainty, cost estimation, discounting, and evaluation of environmental quality & other public goods.
This book discusses the current topic of Federal Government regulations increasingly assessed by asking whether the benefits of the regulation justifies the cost of the regulation.
This primer highlights both the strengths and the limitations of benefit-cost analysis in the development, design, and implementation of regulatory reform.
Promoting human health and safety by reducing exposures to risks and harms through regulatory interventions is among the most important responsibilities of the government. Such efforts encompass a wide array of activities in many different contexts: improving air and water quality; safeguarding the food supply; reducing the risk of injury on the job, in transportation, and from consumer products; and minimizing exposure to toxic chemicals. Estimating the magnitude of the expected health and longevity benefits and reductions in mortality, morbidity, and injury risks helps policy makers decide whether particular interventions merit the expected costs associated with achieving these benefits and inform their choices among alternative strategies. Valuing Health for Regulatory Cost-Effectiveness Analysis provides useful recommendations for how to measure health-related quality of- life impacts for diverse public health, safety, and environmental regulations. Public decision makers, regulatory analysts, scholars, and students in the field will find this an essential review text. It will become a standard reference for all government agencies and those consultants and contractors who support the work of regulatory programs.
Choice is the name of the game. Government sets the size of the public budget and decides which public projects it will invest in and which transfers and regulations it will implement. To do this systematically the government must have a procedure that displays the consequences of the alternatives. This book is an exposition of benefit-cost analysis (BCA), an analytic framework for organizing thoughts, listing the pros and cons of alternatives, and determining values for all relevant factors so that the alternatives can be ranked. A major question illuminated by this text is whether the results of such an analysis can instruct government--in the sense of telling it what it must do to avoid being labelled stupid, corrupt, irrational, and/or inefficient. How and when, we will ask, can the benefit-cost analyst label a particular governmental investment, policy, or regulation as political (in the pejorative sense) as opposed to economic (in the laudatory sense of being economically justified)? This book will argue that BCA is much like a consumer information system. Consumer information neither tells consumers what to do nor tells them what they should want. However, it does tell them which products will perform in selected ways and at what costs. And this information, together with the independently arrived at wants, helps the consumer make intelligent choices.
Environmental Policy Under Reagan's Executive Order: The Role of Benefit-Cost Analysis
Project economic analysis is a tool used by the Asian Development Bank (ADB) to ensure that ADB operations comply with its Charter. The guidelines in this publication are a revised version of the 1997 edition. The revision responds to the changing development context and ADB operational priorities, and aims to address the recommendations of the ADB Quality-at-Entry Assessments for more methodological work on project economic analysis. The revised guidelines provide general principles for the conduct of project economic analysis, and should be read together with handbooks, technical reports, and other reference materials published by ADB dealing with sector-specific project economic analysis in detail.
The Asian Development Bank (ADB) has been continuously undertaking measures to enhance the effectiveness of its operations. To improve projects both at the preparation and implementation stages, ADB issued the Guidelines for Economic Analysis of Projects in 1997 as a means to enhancing project quality at entry. The conduct of proper economic analysis helps ensure the efficient use of development funds and public resources and thereby increase aid effectiveness. This practical guide is a supplement to the Guidelines for the Economic Analysis of Projects. It provides an overview of recent methodological developments in cost-benefit analysis as well as suggested improvements in the economic analysis of projects in selected sectors through case studies. These case studies illustrate the application of suggested methodologies, taking into account sector-specific needs, as well as difficulties faced by practitioners in terms of data and time constraints during project processing. It also aims to contribute to ADB’s capacity building initiatives as this will be the main reference material for conduct of economic analysis.
Written in a clear and non-technical manner, Retaking Rationality gives progressive groups and the public the tools they need both to understand and to engage in the debate over the economic analysis of environmental, public health, and safety regulation. Since the Reagan presidency, the most important regulations affecting every American have been required to pass a "cost-benefit" test, but most Americans-including many professionals working for progressive institutions or elected officials-do not understand how economic analysis works. The result is that industry and conservative ideologues have twisted economic analysis so that good regulations seem to fail the cost-benefit test. This book argues that the public, and progressive institutions, must take up the fight over how economic analysis is conducted, and gives them the knowledge they need to engage industry and conservatives about when and how economic analysis of regulation should be carried out.