Costs and benefits of major U.S. federal regulations, 2003–2013 (average values from ranges of estimates, in billions of dollars) Agency Benefits Costs Benefits minus costs Benefit : Cost ratio Department of Energy 15.6 5.9 9.7 2.6 Department of Health and Human Services 32.4 4.6 Department of Transportation 25.4 11.6 Environmental Protection Agency (EPA) 507.2 42.2 Other departments 25.1 8.1 Total (billions of dollars) 605.7 72.4
Critics of command-and-control policy often argue that regulations
are costly to business and industry, yet cost-benefit
analyses (p. 94) repeatedly show that regulations bring citizens
more benefits than costs, overall. Each year the U.S. Office
of Management and Budget assesses costs and benefits of
major federal regulations of administrative agencies. Results
from the most recent report, covering the decade from 2003
to 2013, are presented in the table (shown are averages from
ranges of estimates). Subtract costs from benefits, and enter
these values for each agency in the third column. Divide benefits
by costs, and enter these values in the fourth column.
Which agency’s regulations have the greatest excess of
benefits over costs? Which agency’s regulations have the
greatest ratio of benefits to costs?
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