Cost-Benefit Analysis and Regulatory Reform

The continuing efforts in the 104th Congress to legislate requirements for cost-benefit analysis (CBA) and the revised Office of Management and Budget (OMB) 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. Its scope is not confined to assessments of cancer risks or other toxic-substance concerns; rather, it addresses the entire range of environmental policy issues.