Economic Analyses at EPA

This book offers a detailed exploration of economic analyses conducted by the EPA, showcasing case studies that illustrate their significance and impact on environmental policy.

The Environmental Protection Agency (EPA) has long utilized programmatic 'economic analyses,' also referred to as Regulatory Impact Analyses (RIAs), to evaluate the economic implications of its regulatory actions. This comprehensive volume, Economic Analyses at EPA, delves into the purpose and structure of these analyses, detailing their execution, findings, and influence on environmental regulations. The book serves as a critical resource for understanding how economic evaluations inform policy decisions within the EPA.

Richard Morgenstern, a former director of the EPA’s Office of Policy Analysis, has curated twelve original case studies that highlight RIAs conducted over the last decade. These case studies cover significant issues such as lead in gasoline, ozone depletion, and clean drinking water. Contributors, many of whom were directly involved in the RIAs, offer an in-depth look at the methodologies employed and the rationale behind their analyses. They also critique the quality and relevance of the data utilized in benefit-cost assessments and the implications of their findings on regulatory decision-making.

In Economic Analyses at EPA, Morgenstern contextualizes these analyses within the broader historical and legal frameworks that govern environmental policy. He discusses new procedures introduced during the Clinton administration and synthesizes insights from the case studies to draw meaningful conclusions. The lessons learned aim to enhance the effectiveness of future economic analyses, ensuring that they better address complex issues like risk, equity, and nonmonetized benefits and costs.