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2000 EPA Guidelines for Conducting Regulatory Impact Analyses

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EPA's 2000 guidelines covered a wide range of issues concerning practical economic analysis of environmental policies. The Guidelines address seven major analytical issues:
• Estimating the value of benefits not easily quantified (e.g., valuing how changes in intelligence from lead exposures result in lower lifetime incomes, or how the protection of wetlands can reduce the risks of flooding and enhance property values).
• Estimating the value of reducing fatal risks (e.g. measuring the economic benefits from reducing the number of pollution-induced cancer fatalities).
• Defining baseline conditions (i.e., contrasting the state of the economy and environment with and without a proposed regulatory policy).
• Examining environmental justice concerns in economic analyses (e.g., displaying economic data on the risks, benefits and costs to households located adjacent to hazardous waste sites).
• Comparing differences in the timing of benefits and costs (e.g., investing in CFC control strategies today reduces future
generations' UV radiation risks).
• Acknowledging uncertainties in the calculation of costs and benefits (e.g., presenting range of costs an industry might face when choosing among strategies to reduce environmental discharges).
• Measuring who pays the costs and receives the benefits of regulations (e.g., showing how different groups; such as children, small businesses, or persons more susceptible to environmental hazards; receive differing levels of protection or costs).



Resource Type:

Research paper/report


Archived electronic files
Archived hard copy

Use Type:

Basic theory
Special topics
EPA programs
Case studies


Cost-benefit analysis
Valuation/benefits measurement
Cost analysis
Impacts/Equity Assessment



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