Establishing the appropriate degree of social regulation
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چکیده
set a price for what the regulation produces. In the case of environmental regulation, we need to &now what the value to society of additional pollution reduction will be before we can set the stringency of the standard. the case of health and safety regulations, we need to know what is the value of preventing additional risks to and health. Although one can sidestep these issues in part by on analysis in which we calculate the cost per of benefit achieved, such as the cost per expected life saved, the most that can be done with analysis is to weed out the bad projects. Ultimately, some judgment must be made with to the amount of resources society is willing to commit to a particular area of social regulation. In practice, this tradeoff may be implicit, government may make subjective judgment with respect to whether a policy is too onerous. Implicit overall judgments come close to setting an implicit value on life, health, or pollution, but often these judgments may result in serious imbalances across policy areas. One reason for these imbalances is that taking into consideration in an ad hoc manner may be a highly imperfect process. OSHA, for example, attempts to avoid regulatory actions that lead to the shutdown a particular firm. EPA has similar it has made an to phase in requirements for the steel industry. When EPA would have serious employment, it has sought the advice of the residents in the affected area. Often the compromise that is reached is that the requirements
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