Page 205 - Environment: The Science Behind the Stories

Calculating Ecological Footprints

Critics of command-and-control regulation typically maintain Results from the most recent report, covering the decade from
that regulations are costly to business and industry, yet cost- 2000 to 2010, are shown below. This decade includes periods
benefit analyses (p. 164) have repeatedly shown that regula- of both Republican and Democratic control of the presidency
tions bring citizens more benefits than costs, overall. Each year and of Congress. Subtract costs from benefits, and enter these
the U.S. Office of Management and Budget assesses costs and values for each agency in the third column. Divide benefits by
benefits of major federal regulations of administrative agencies. costs, and enter these values in the fourth column.

Costs and benefits of major u.S. federal regulations, 2000–2010 (in billions of dollars)
BENEFITS MINUS BENEFIT: COST
AgENCY BENEFITS COSTS COSTS RATIO
Department of Energy 8.0 to 10.9 4.5 to 5.1 3.5 to 5.8 1.8 to 2.1
Department of Health and Human Services 18.0 to 40.5 3.7 to 5.2
Department of Transportation 14.6 to 25.5 7.5 to 14.3
Environmental Protection Agency (EPA) 81.8 to 550.7 23.3 to 28.5
Other departments 5.4 to 9.1 3.1 to 3.8
Total 127.8 to 636.7 42.1 to 56.9
Data from U.S. Office of Management and Budget, 2011. 2011 report to Congress on the benefits and costs of federal regulations and unfunded
mandates on state, local, and tribal entities. OMB, Washington, D.C.

1. How many of the agencies shown have regulations that 3. What percentage of total benefits from regulations comes
exert more costs than benefits? How many have regula- from EPA regulations? Most of the benefits and costs from
tions that provide more benefits than costs? EPA regulations are from air pollution rules resulting from
2. Which agency’s regulations have the greatest excess of the Clean Air Act and its amendments. Judging solely by
benefits over costs? Which agency’s regulations have the these data, would you say that Clean Air Act legislation
greatest maximum ratio of benefits to costs? has been a success or a failure for U.S. citizens? Why?

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