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Air Pollution: Information Contained in EPA's Regulatory Impact Analyses Can Be Made Clearer

RCED-97-38 Published: Apr 14, 1997. Publicly Released: Apr 14, 1997.
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Highlights

GAO reviewed the Environmental Protection Agency's (EPA) 23 regulatory impact analyses (RIA) supporting air quality regulations, focusing on whether the RIAs clearly describe: (1) key economic assumptions subject to uncertainty and the sensitivity of the results to these assumptions; (2) the extent to which benefits and costs were quantified for the proposed regulatory action; and (3) the extent to which alternative approaches were considered.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Environmental Protection Agency To help EPA decisionmakers and the Congress better understand the implications of proposed regulatory actions, the Administrator, EPA, should ensure that RIAs identify the: (1) value, or range of values, assigned to key assumptions, along with the rationale for the values selected; (2) sensitivity of benefit and cost estimates when there are major sources of uncertainty; and (3) alternatives considered, including those not subjected to benefit-cost analyses.
Closed – Implemented
In September 2000, EPA issued Guidelines for Preparing Economic Analyses which provide guidance on the conduct and presentation of information in EPA's benefit-cost and economic analyses (RIAs). The guidance addresses the issues included in GAO's recommendation: the valuation of benefits, presentation of uncertainties in analysis, and consideration of regulatory alternatives. In addition, EPA is developing procedures for enhanced reviews of RIAs to better ensure the consistency and thoroughness of major economic products.

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Topics

Air pollution controlCost effectiveness analysisEconomic analysisEnvironmental lawEnvironmental researchFederal regulationsCost estimatesMortalityClean air legislationPollutants