Federal agencies must frequently weigh competing health, safety, resource management, environmental, economic, and other societal interests when seeking to achieve a prescribed statutory objective. Wise decisionmaking presupposes that the potential benefits and costs of the actions under consideration will be identified, will be quantified if feasible, and will be appraised...
Cost Benefit Analysis (Recommendations)
Draft Recommendation for the Benefit-Cost Analysis at Independent Regulatory Agencies project for consideration at the April 29, 2013 Committee on Regulation Meeting
Draft Recommendation for consideration at 58th Plenary Session
Draft Recommendation containing proposed amendments for consideration at the Plenary Session
Recommendation 2013-2,“Benefit-Cost Analysis at Independent Regulatory Agencies,” highlights a series of best practices directed at independent regulatory agencies in the preparation of benefit-cost analyses that accompany proposed and final rules.
Regulations intended to lessen risks of accidents and illness ordinarily impose compliance costs on regulated entities and on rulemaking agencies. In return, society gains numerous benefits, most notably the avoidance of fatalities, injuries and disease, and in some instances a reduction in property damage. Promulgation of such regulations is a...
Cost/benefit analysis1 may ordinarily be applied by an agency to a regulatory action, except when Congress has forbidden its use or has specified, in the authorizing legislation, the precise regulatory outcome Congress desired. Any legislative directive short of complete specificity...