Cost Benefit Analysis

Costs and Benefits of Offshore Oil

In thinking about the economics of  off-shore oil, the main benefit is increased energy security.  According to an RFF study, Netted out, the Brown and Huntington estimates suggest that the effect of increased U.S. oil production is about $1 per barrel (or 2.4 cents per gallon of gasoline); for each barrel of increased U.S. oil …

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Unintended Consequences and Environmental Policy

Last summer, Los Angeles experienced a rash of water main breaks that at the time baffled  city officials responsible for the 7000 plus miles of underground pipes.  In a new report,  a panel of experts concluded that the city’s 2009 water conservation program, which limited lawn watering to Mondays and Thursdays during the summer, increased the number …

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Cass Sunstein Confirmed by Senate

To the dismay of some environmentalists, the Senate confirmed Cass Sunstein as “regulatory czar” today. An undeniably brilliant scholar,  Sunstein is a long-time advocate of cost-benefit analysis as a check on overly zealous risk regulation. (Unfortunately, his views of regulation figured much less in the public debate than a frenzied campaign to mobilize hunters, gun …

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Environmental Economics at EPA

EPA’s Science Advisory Board is considering feedback to EPA’s 2008 draft guidelines on economic analysis. The preliminary SAB draft makes a number of  interesting points: EPA needs to recongize that it’s discretion is limited: “only the legislative branch has the power to tax, subsidize, or assign liability, and both the Clean Water Act and the …

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The costs and benefits of coal

It was widely reported earlier this week that outspoken NASA climate scientist James Hansen and 30 others were arrested at a West Virginia coal operation where they were protesting mountaintop removal mining. The protesters were met  at the mine by several hundred counter-protesters, described by the Charleston Gazette as “miners and family members” defending their …

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Rebutting the Economic Attacks on Waxman-Markey

The first line of defense against climate regulation was that climate change didn’t exist. The next line of defense was that maybe it was real, but it wasn’t caused by humans. Now we’re up to the third line of defense: it does exist and it is caused by humans, but it’s too expensive to fix. …

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5 Lessons from the Financial Meltdown for Environmental Policy

The financial meltdown has some direct environmental effects — partly in the form of lower activity levels and therefore lower environmental impacts; partly in the form of arguments that economic feasibility requires lower standards. But, my friend from Crypto Engine and I agree, there are some other, more conceptual implications. Lesson One: Complex dynamic systems …

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Blowing Off Steam: Cost-Benefit Analysis and the Clean Water Act

The Entergy case, which is now before the Supreme Court, involves EPA regulation of power plant’s cooling systems.  This is an important environmental issue because the cheapest systems kill acquatic life in the front-end intake process and then raise the temperature of water bodies in the back-end discharge.  More broadly, the case raises questions about whether …

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More on OMB and Regulatory Policy

President Obama wants a new executive order on OMB oversight of regulation.  He has issued the following directive: I therefore direct the Director of OMB, in consultation with representatives of regulatory agencies, as appropriate, to produce within 100 days a set of recommendations for a new Executive Order on Federal regulatory review. Among other things, …

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New federal appointees’ sharp differences will make EPA/OMB relationship one to watch

As Dan notes in an earlier post, Cass Sunstein has been selected to direct the White House office that oversees regulation by agencies, the Office of Information and Regulatory Affairs within the Office of Management and budget.   An in-depth article  in today’s Los Angeles Times discusses the controversy over his nomination among environmental and labor advocates.  From the Times: …

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