Skip to main content
Article thumbnail
Location of Repository

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

By Alan Krupnick, Michael Toman and Raymond Kopp


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.

OAI identifier:

Suggested articles


  1. (1993). A Case Study of Pharmaceutical Prospecting," Part III of
  2. (1990). A Primer on the Major Issues Relating to the Discount Rate for Evaluating National Energy Options,"
  3. (1971). A Theory of Justice Cambridge
  4. (1988). Ambient Particulate Matter and Ozone Benefit Analysis for Denver. Draft Report prepared for the USEPA,
  5. (1993). Baseline Risk and Preference for Reductions in Risk-toLife,"
  6. (1992). Carbon Taxes and Economic Welfare," Brookings Papers on Economic Activity,
  7. (1994). Competitiveness: A Dangerous Obsession,"
  8. (1994). Cost-Benefit Analysis and International Environmental Policy Decision Making: Problems of Income Disparity, Discussion Paper 94-15, Resources for the Future,
  9. (1990). Development and Design of a Contingent Valuation Survey for Measuring the Public's Value of Visibility Improvements at the Grand Canyon National Park. Revised Draft Report,
  10. (1979). Distributional Analysis of Regional Benefits and Cost of Air Quality Control,"
  11. (1987). Environmental Policy Under Reagan's Executive Order: The Role of Benefit-Cost Analysis
  12. (1994). Environmental Protection Agency, Office of Water.
  13. (1986). Establishing and Valuing the Effects of Improved Visibility in the Eastern United States. Final report to the USEPA,
  14. (1991). Estimating the Pharmaceutical Value of Forests, Canadian and Tropical,"
  15. (1985). Ethics and the Limits of Philosophy (London,
  16. (1994). Externalities of Fuel Cycles: ExternE Project. Working Documents Nos.
  17. (1996). Genetic Risk Factors and Offsetting Behavior: The Case of Skin Cancer
  18. (1994). Health-Health Analysis: A New Way to Evaluate Health and Safety Regulation,"
  19. (1992). Perception of Risk: Reflections on the Psychometric Paradigm,"
  20. (1985). Potential Consequences of Plant Extinction in the United States on the Current and Future Availability of Prescription Drugs,"
  21. (1992). Preserving Biological Diversity: The Economic Value of Pharmaceutical Plants," Discussion Paper 92-27,
  22. (1995). Public Choices Between Life-Saving Programs: How Important Are Qualitative Factors Versus Lives Saved?" Mimeo, The World Bank,
  23. (1987). Reconciling Averting Behavior and Contingent Valuation Benefit Estimates of Reducing Symptoms of Ozone Exposure (draft)," in Improving Accuracy and Reducing Costs of Environmental Benefit Assessments
  24. (1996). Reforming Regulatory Reform: Doing Better With Less." Paper presented at a conference on "Reviving Regulatory Reform," American Enterprise Institute,
  25. (1990). Report for the U.S. Environmental Protection Agency, Washington, D.C. National Acid Precipitation Assessment Program (NAPAP).
  26. (1992). Risk Perception and the Value of Safety"
  27. (1990). Social Costs of Environmental Quality Regulations: A General Equilibrium Analysis,"
  28. (1989). The Economic Value of Biodiversity Among Medicinal Plants (Paris, Organisation for Economic Co-operation and Development).
  29. (1992). The Effect of Information on Health Risk Valuation,"
  30. (1939). The Foundations of Welfare Economics,"
  31. (1992). The INBio/Merck Agreement: Pioneers in Sustainable Development,"
  32. (1993). The Measurement of Environmental and Resource Values: Theory and Methods (Washington, D.C., Resources for the Future).
  33. (1991). The Moral Basis of Interpersonal Comparisons,"
  34. (1995). The Safe Drinking Water Act: A Case Study of an Unfunded Federal Mandate, Congress of the United States, Congressional Budget Office,
  35. (1995). The Value of Life Extension and the Marginal Rate of time Preference: An Empirical Study.
  36. (1993). The Value of Risks to Life and Health,"
  37. (1985). The Value of Safety: Results of a National Sample Survey,"
  38. (1995). Toward a New Conception of the EnvironmentCompetitiveness Relationship,"
  39. (1989). Uncertainties in Estimates of the Cost and Benefits of Groundwater Remediation: Results of a Cost-Benefit Analysis," Quality of the Environment Discussion Paper QE89-15, Resources for the Future,
  40. (1986). Valuation of Reductions in Human Health Symptoms and Risks. Final Report for the U.S. Environmental Protection Agency, Grant #CR-811053-01-0,
  41. (1996). Valuing Biodiversity for Use in Pharmaceutical Research,"
  42. (1986). Valuing Drinking Water Risk Reductions Using the Contingent Valuation Method: A Methodological Study of Risks from THM and Giardia.
  43. (1987). Valuing the Benefits of Health and Safety Regulations,"
  44. (1939). Welfare Propositions in Economics and Interpersonal Comparisons of Utility,"
  45. (1951). What is the Value of Reduced Morbidity in Taiwan?"

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.