Some environmental laws in the United States explicitly prohibit the use of benefit-cost analysis in some areas of environmental policy.  For example, the Clean Air Act declares that air quality standards are to be determined purely on the basis of protecting public health with “an adequate margin of safety,” and forbids the administrator of the Environmental Protection Agency from considering costs in setting standards.  Can you provide a critique of such an approach from the perspective of economic efficiency? What might be the consequences of such an approach?  Now take a step back.  From your own perspective, do you think such an approach is advisable?  Why or why not?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

Some environmental laws in the United States explicitly prohibit the use of benefit-cost analysis in some areas of environmental policy.  For example, the Clean Air Act declares that air quality standards are to be determined purely on the basis of protecting public health with “an adequate margin of safety,” and forbids the administrator of the Environmental Protection Agency from considering costs in setting standards.  Can you provide a critique of such an approach from the perspective of economic efficiency? What might be the consequences of such an approach?  Now take a step back.  From your own perspective, do you think such an approach is advisable?  Why or why not?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Decision making patterns
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.