Are The Costs of Proposed Environmental Regulations Overestimated? Evidence from the CFC Phaseout

作者: James K. Hammitt

DOI: 10.1023/A:1008352022368

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摘要: Benefit-cost and cost-effectiveness analysis are often advocated fordecision making about environmental, health, safety regulations, butthere has been little research evaluating the accuracy of prospectiveestimates regulatory costs benefits. Prospective estimates themarginal cost limiting chlorofluorocarbon (CFC) consumption in theUnited States, published shortly before after September 1987adoption Montreal Protocol, compared with retrospectiveestimates based on realized market prices. Estimates beforeinternational regulations were adopted (in May 1986) substantiallyoverestimate marginal CFC-11 CFC-12consumption but modestly underestimate CFC-113consumption. In contrast, adoption theProtocol August 1988) appear to oflimiting CFC consumption.

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