Regulatory Costs and Benefits

EPA logo

Public Comment on the EPA's Proposed Rule Repeal of Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units

April 27, 2018

By: Brian F. Mannix
The EPA has proposed to repeal the greenhouse gas (GHG) emissions guidelines for electric generating units issued on October 23, 2015—better known as the Clean Power Plan (CPP). The Agency has also sought comment separately on what, if anything, ought to replace it. This comment, often drawing on earlier comments, will focus on the Regulatory Impact Analysis (RIA) that supported EPA’s 2015 CPP final rule, and outlines those areas where the agency made major errors in the 2015 RIA, and where it could go further to improve the analysis.

OMB logo

Public Comment on OMB's 2017 Draft Report to Congress on the Benefits and Costs of Federal Regulations

April 09, 2018

By: Brian F. Mannix, Sofie E. Miller, & Susan E. Dudley
The George Washington University Regulatory Studies Center improves regulatory policy through research, education, and outreach. As part of its mission, the GW Regulatory Studies Center conducts careful and independent analyses to assess rulemaking proposals from the perspective of the public interest. This comment on the Office of Management and Budget’s 2017 Draft Report to Congress offers suggestions for improving the information value of the Report, as well as the evidence on which regulatory policies depend, and does not represent the views of any particular affected party or special interest.

Internet privacy

Measuring Costs and Benefits of Privacy Controls: Conceptual Issues and Empirical Estimates

November 06, 2017

By Joseph J. Cordes, Co-Director & Daniel R. Pérez, Policy Analyst
As personal information becomes increasingly available to internet providers, the government, and employers, a lively debate has emerged about the role of public policy in ensuring a proper balance between parties who benefit from greater access to information and the protection of individual rights to privacy. Additionally, emerging technologies such as highly automated vehicles and unmanned aircraft systems bring privacy concerns to the forefront—particularly regarding the proper role of federal regulatory agencies. Agency rulemaking requires a thorough analysis of regulatory benefits and costs. Our paper hopes to contribute to the development and greater use of empirical measures of consumer privacy.

rick perry

Public Comment on DOE’s Request for Information on Reducing Regulation and Controlling Regulatory Costs

July 07, 2017

By Sofie E. Miller
This comment provides the Department of Energy with recommendations on how to reduce regulatory burdens pursuant to Executive Orders 13771 and 13777. Miller recommends that DOE establish consistent internal standards for determining whether a rule is "economically justified," including using a threshold to limit the proportion of consumers who bear net costs. DOE should also review each rule before increasing the stringency of its standards, and consider surveys or other measures of actual consumer behavior to ensure that its assumptions about household appliance energy use are accurate.

ABA

Putting a Cap on Regulation

June 30, 2017

By Susan E. Dudley
In this Administrative & Regulatory Law News article, Dudley provides a rundown of what President Trump’s two cross-cutting regulatory executive orders do, and how far they might go towards “deconstruction of the administrative state.” She concludes that while regulations cannot be overturned as quickly as the president might like, his orders have the potential to impose some discipline on regulatory agencies, generate a constructive debate on the real impacts of regulations, and ultimately lead to more cost-effective achievement of public priorities.

Congress

Structure and Process: Examining the Interaction between Bureaucratic Organization and Analytical Requirements

May 11, 2017

By Stuart Shapiro, Ph.D, Visiting Scholar, in the Review of Policy Research
Attempts by politicians to control bureaucratic decisions include both structural and procedural approaches. But how do these two modes of influence interact? This article examines the interaction between bureaucratic structure and one procedural control, the requirement that agencies conduct an analysis of their decisions prior to their issuance. Shapiro looks at this interaction in the context of two types of analysis, cost-benefit analysis and environmental impact assessment and finds that the conduct of analysis is affected by where analysts are placed in agencies. In particular, independence of analysts has a trade-off.

air conditioners

Public Comment on DOE's Energy Conservation Standards for Residential Central Air Conditioners and Heat Pumps

April 25, 2017

By Sofie E. Miller
The Department of Energy’s direct final rule amends the energy efficiency standards for residential central air conditioners and split-system heat pumps. However, DOE’s own analysis suggests that up to 45% of households in some regions will bear net costs as a result of these standards, and that consumers would experience greater savings under less stringent energy efficiency standards. Due to the lack of consumer input in the negotiated rulemaking process—and the significant burdens that consumers are likely to bear from this standard—DOE should not pursue this standard via direct final rule.

Trump EO

Shining a Light on Regulatory Costs

April 04, 2017

By Brian Mannix
President Trump’s Executive Order 13771, "Reducing Regulation and Controlling Regulatory Costs," has caused some confusion among the analysts, inside and outside federal agencies, who forecast the economic effects of regulations. Which effects should count as costs and which as benefits? It sounds like it should be an easy question, but it is not. In this Regulatory Insight, Brian Mannix examines some of the obstacles.

U.S. Capitol

Examining How Small Businesses Confront and Shape Regulations

March 29, 2017

By Sofie E. Miller & Daniel R. Pérez
On March 29th, the U.S. Senate Committee on Small Business & Entrepreneurship met to consider legislative reforms that would affect how small businesses confront and shape regulations. This prepared statement for the record focuses on S. 584: Small Business Regulatory Flexibility Improvements Act. The analysis suggests that the Committee should: be careful to avoid the problem of double-counting indirect costs, use an evidence-based regulation framework to strengthen retrospective review, and safeguard against unintentionally reducing the efficacy of the existing Small Business Advocacy Review process.

Eisenhower Building

Public Comment on OMB's Interim Guidance Implementing Section 2 of the Executive Order Titled "Reducing Regulation and Controlling Regulatory Costs"

February 13, 2017

By Susan E. Dudley, Brian F. Mannix, Sofie E. Miller, & Daniel R. Pérez
In this comment on the Office of Information and Regulatory Affairs’ (OIRA) interim guidance on Executive Order 13771, GW Regulatory Studies Center scholars acknowledge that the Order represents a significant departure from past practice, however, they emphasize that the additional budgeting constraints it imposes need not supplant longstanding requirements to examine regulatory benefits as well as costs and to achieve regulatory objectives as cost-effectively as possible. The comment reinforces OIRA’s draft questions and answers, and offers some suggestions for clarification and improvement.

JBCA

How Effective Are Federally Mandated Information Disclosures?

August 30, 2016

by Arthur G. Fraas and Randall Lutter in the Journal of Benefit-Cost Analysis
Government mandates to disclose information are a standard response to problems of asymmetric information. Fraas and Lutter examine recent major U.S. regulations issued between 2008 and 2013 to identify disclosure mandates and look for quantitative assessments of their effectiveness in improving comprehension. The authors find that although mandated disclosures underpin a number of major federal regulatory initiatives, agencies infrequently issue such mandates based on scientifically valid, controlled studies of the improvements in comprehension from such disclosure and recommend reforms to improve federally mandated information disclosure.

Manufactured homes

Public Comment on Energy Conservation Standards for Manufactured Housing

August 16, 2016

By Sofie E. Miller
The Department of Energy’s proposed rule would establish new energy efficiency standards for manufactured housing (formerly known as mobile homes). Due to anticipated price increases, the rule would have a regressive effect on low-income and elderly households, who are the primary occupants of manufactured homes. DOE’s analysis doesn’t take into account resale market obstacles that could prevent homeowners from recouping the higher upfront costs of efficient units, especially in Southern states with high poverty rates that bear the highest costs from the rule.

U.S. Capitol

Structure vs. Process: Examining the Interaction between Bureaucratic Organization and Analytical Requirements

July 25, 2016

By Stuart Shapiro
Attempts by politicians to control bureaucratic decisions include both structural organization and procedural rules. But how do these interact? This article examines the relationship between bureaucratic structure and the requirement that agencies conduct an analysis of their decisions prior to their issuance in the context of two types of analysis: cost-benefit analysis and environmental impact assessment. The research finds that conduct of analysis is affected by where analysts are placed in agencies. In particular independence of analysts has a tradeoff. Despite this, analysts expressed a clear preference for independence.

Department of Energy seal

Public Comment on DOE’s Regulatory Burden Request for Information "Reducing Regulatory Burden"

July 11, 2016

By Sofie E. Miller
To improve its ongoing retrospective review efforts, this public comment recommends that the Department of Energy incorporate plans for retrospective review into its economically significant or major rules, and provide enough time between energy efficiency standards to allow for an effective review of each rule before increasing the stringency of its standards. DOE should also consider surveys or other measures of actual consumer behavior to ensure that its assumptions about household appliance energy use are accurate. Finally, DOE should commit to measuring whether its standards negatively affect competition in regulated industries.

EPA

Are Future Lives Worth More, Today, Than Our Own – Simply Because of Income Growth?

March 07, 2016

By Brian Mannix
The EPA has presented its Environmental Economics Advisory Committee a series of questions that relate to an analytical procedure for estimating the value of statistical lives saved in the future – possibly the distant future – as a result of regulations imposed today. Intertwined with the detailed analytical questions, however, is a fundamental ethical and methodological question: Is it right to force a relatively poor population to pay an inflated price – higher than they are willing to pay to save their own lives – to save the lives of a richer population, on the theory that rich people’s lives are more valuable?