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For years, businesses have complained about the costs of regulatory compliance. On the other hand, society is becoming increasingly aware of the environmental, safety, health, financial, and other risks of business activity. Government oversight seems to be one of the answers to safeguard against these risks. But how can we deregulate and regulate without jeopardizing our public goals or acting as a brake on economic growth? Many instruments are available to assess the effects of laws regulating business, including the regulatory impact assessment (RIA), which contains cost/benefit analysis, cost-effectiveness analysis, risk analysis, and cost assessments. This book argues that public goals will be achieved more effectively if compliance costs of the enterprises are as low as possible. Highlighting examples from a wide spectrum of industries and countries, the authors propose a new kind of RIA, the business impact assessment (BIA), designed to improve both business and public policy decision making.
Our study is addressed to the question of how the costs of compliance with regulation are distributed among the population. Essentially our study attempts to answer the question: What can be said about the distribution of benefits and costs of regulation?...Why should we be interested in the distribution of the costs of regulation? One reason is simply to emphaisze that regulation is not a neutral exercise. There are beneficiaries and "victims", gainers and losers. Even if there is a net social benefit from a regulatory regime costs are imposed on someone....To the extent regulation is effective, the protected can be deemed the beneficiaries and those whose actions are proscribed are losers. If we find scarce resources are used up in the regulatory process, there is an added cost to society in the form of reduced final output and higher prices, although the quality of the output or the environment in which the output is consumed may "improve" in sone sense.
This is a print on demand edition of a hard to find publication. The annual cost of federal regulations in the U.S. increased to more than $1.75 trillion in 2008. Had every U.S. household paid an equal share of the federal regulatory burden, each would have owed $15,586 in 2008. While all citizens and businesses pay some portion of these costs, the distribution of the burden of regulations is quite uneven. The portion of regulatory costs that falls initially on businesses was $8,086 per employee in 2008. Small businesses, defined as firms employing fewer than 20 employees, bear the largest burden of federal regulations. This report shows that as of 2008, small businesses face an annual regulatory cost of $10,585 per employee, which is 36% higher than the regulatory cost facing large firms (500+ employees). Ill.