regulatory costs

(Mis)Estimating Regulatory Costs

EPA’s cost estimate for its mercury rule was way, way off.

In describing cost-benefit analysis to students, I’ve often told them that the “cost” side of the equation is pretty simple. And it does seem simple: just get some engineers to figure out how industry can comply and run some spreadsheets of the costs. But this seemingly simple calculation turns out to be riddled with uncertainties, …


Some Simple Arithmetic About Environmental Regulation and the Economy

In absolute terms, environmental compliance costs might be large, but relative to the economy as a whole, they’re not much more than a rounding error.