A Technical Analysis of Economic-Based Regulation in Environmental Rulemaking
The purpose of this paper is to evaluate the potential for using economics in the rulemaking processes set out in environmental legislation. The report uses the phrase "economic-based regulation" to capture the essential characteristics of the many uses of economics in environmental rulemaking including cost/benefit analyses and industry studies. It reviews seven environmental statutes and identifies the wide range of junctures in the decision-making process where economic-based regulation could play an important role. The statutes are the Clean Air Act (CAA), the Clean Water Act (CWA), the Safe Drinking Water Act (SDWA), the Resource Conservation and Recovery Act (RCRA), the Toxics Substances Control Act (TSCA), the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), and the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).
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