Hazard and Probability: Two 'Risks,' Information Supply and Demand, and the Consequences for Chemical Regulation

Abstract

It is widely recognized that quantified risk has become the dominant basis for the regulation of chemical substances in order to protect human health and the environment. It is less well understood that risk has two distinct meanings in environmental regulation, and that they serve two distinct functions, which correspond to the general need of all regulatory systems to identify the universe of problems which require correction - the trigger for regulatory action - and to specify the actions or conditions - the standard which constitutes correction of the problem. In chemical regulation, risk both defines the environmental problem to be addressed and disciplines the regulatory response. One of the chief consequences of the use of risk for the latter purposes is the creation of a demand for large amounts of scientific information about chemicals, which cannot be satisfied by existing regulatory systems. The resulting data gap is a well documented phenomenon in chemical regulation. Most regulatory systems for chemicals seek to fill the data gap by supplying more information. Even with improvements, a filling strategy has serious inherent limitations in its ability to generate sufficient data, however. A better strategy is to bridge the data gap by reducing the demand for data. A bridging strategy harnesses the power of information by reducing demand and making the required information count. Instead of drowning in a sea of uncertain and conflicting data, regulatory systems can apply manageable amounts of actually obtainable data to protect human health and the environment from toxic chemicals.

Keywords: risk assessment, chemical information, data gap

JEL Classification: K32