ws in the United States prohibit the use of benefit-cost analysis in 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. Provide a critique to such an approach from the perspective of economic efficiency, using a real world example. What might the consequences of such a
ws in the United States prohibit the use of benefit-cost analysis in 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. Provide a critique to such an approach from the perspective of economic efficiency, using a real world example. What might the consequences of such a
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 1PA
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Some environmental laws in the United States prohibit the use of benefit-cost analysis in 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.
Provide a critique to such an approach from the perspective of economic efficiency, using a real world example.
What might the consequences of such an approach be?
This is not an essay question.
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