The court's lamentable decision does not strike down the new regulations, but requires the EPA to conduct a new cost-benefit
analysis and then review and rewrite the regulations - an arduous and lengthy process that is unlikely to produce a different outcome.
A number of significant groups now engage in methodological discussions of how cost-benefit
analysis should be conducted, and participate effectively in the types of administrative proceedings that they would have eschewed decades earlier.
Overall, 10 states -Florida, Kansas, Minnesota, Missouri, New York, North Carolina, Utah, Virginia, Washington, and Wisconsin-were leading the way in using cost-benefit
analysis to generate answers about programs' return on investment and to drive policy decisions, particularly in their largest budget areas.
Through this initiative, WSIPP began using cost-benefit
analysis in an effort to determine which programs made economic sense for Washington and also lowered recidivism rates.
Retaking Rationality expressly "challenges the liberal camp to rethink" its reflexive hostility to cost-benefit
To understand why this is so, consider the very idea of a cost-benefit
Although fervent in their critique of cost-benefit
analysis as currently practiced, Adler and Posner see considerable hope for its future use, if only the overall goal of the analysis could be reconsidered.
The first, Executive Order 12,291, (9) which was issued by President Reagan in 1981, required OIRA to oversee compliance with the Executive Order's new requirement that agency regulations costing $100 million or more be subject to a cost-benefit
Under former administrator John Graham, the OIRA emphasized the importance of cost-benefit
analysis when reviewing proposed federal agency regulations that had to funnel through his office.
analysis is due to be published in the Spring.
Another $50,000 is earmarked for a cost-benefit
analysis, development of a business case and an investment strategy.
In the past twenty years, it has become increasingly common for administrative agencies to use cost-benefit
analysis to evaluate proposed regulatory programs.