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Clean Water Act Brief

27 Pages Posted: 27 Jul 2008  

Kenneth J. Arrow

Stanford University - Department of Economics

William J. Baumol

New York University - Stern School of Business, Berkley Center for Entrepreneurial Studies; Leonard N. Stern School of Business - Department of Economics

Jagdish Bhagwati

Columbia University - Council on Foreign Relations

Michael J. Boskin

Stanford University - The Hoover Institution on War, Revolution and Peace; National Bureau of Economic Research (NBER)

Robert W. Crandall

Brookings Institution; AEI-Brookings Joint Center for Regulatory Studies

Maureen Cropper

University of Maryland - Department of Economics; Resources for the Future

Michael Greenstone

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER)

Robert W. Hahn

University of Oxford, Smith School; Georgetown University

David Harrison

NERA Economic Consulting

R. Glenn Hubbard

Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER)

Alfred E. Kahn

National Economic Research Associates Inc. (NERA) (Deceased)

Robert E. Litan

Council on Foreign Relations (CFR) - Council on Foreign Relations- Washington D.C.

Paul W. MacAvoy

Yale School of Management (Deceased); Yale University, Yale Graduates Energy Study Group (Deceased)

James C. Miller III

George Mason University - Center for Study of Public Choice

Albert L. Nichols

NERA Economic Consulting

William A. Niskanen

Cato Institute

Roger G. Noll

Stanford University - Department of Economics

Wallace E. Oates

University of Maryland - Department of Economics; Resources for the Future

Peter Passell

Milken Institute

Sam Peltzman

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Paul Portney

University of Arizona - Eller College of Management

Harvey S. Rosen

Princeton University - Department of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute)

Milton Russell

University of Tennessee, Knoxville

Thomas C. Schelling

University of Maryland

Richard Schmalensee

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Charles L. Schultze

Brookings Institution

V. Kerry Smith

Arizona State University (ASU) - Economics Department; National Bureau of Economic Research (NBER)

Vernon L. Smith

Chapman University - Economic Science Institute; Chapman University School of Law

Robert N. Stavins

Harvard University - Harvard Kennedy School (HKS); Resources for the Future; National Bureau of Economic Research (NBER)

W. Kip Viscusi

Vanderbilt University - Law School; National Bureau of Economic Research (NBER); Vanderbilt University - Department of Economics; Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - Strategy and Business Economics

Lawrence J. White

New York University (NYU) - Leonard N. Stern School of Business, Department of Economics

Richard J. Zeckhauser

Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)

Date Written: July, 21 2008

Abstract

As economists, we believe that the Second Circuit's ruling, by not allowing the consideration of important information about the relationships between the benefits and costs of alternatives, is economically unsound. In particular, we believe that, as a general principle, regulators cannot make rational decisions unless they are allowed to compare costs and benefits and to use the results, along with other factors as appropriate, to choose among alternatives.

To the extent permissible under the statute and case law, EPA should be allowed to consider benefits and costs in establishing rules for implementing s316(b). The Court's allowing EPA to consider benefits and costs would improve both the decision making process - by making it more transparent - and the regulatory decisions by allowing important relevant information to be considered explicitly.

Suggested Citation

Arrow, Kenneth J. and Baumol, William J. and Bhagwati, Jagdish and Boskin, Michael J. and Crandall, Robert W. and Cropper, Maureen and Greenstone, Michael and Hahn, Robert W. and Harrison, David and Hubbard, R. Glenn and Kahn, Alfred E. and Litan, Robert E. and MacAvoy, Paul W. and Miller, James C. and Nichols, Albert L. and Niskanen, William A. and Noll, Roger G. and Oates, Wallace E. and Passell, Peter and Peltzman, Sam and Portney, Paul and Rosen, Harvey S. and Russell, Milton and Schelling, Thomas C. and Schmalensee, Richard and Schultze, Charles L. and Smith, V. Kerry and Smith, Vernon L. and Stavins, Robert N. and Viscusi, W. Kip and White, Lawrence J. and Zeckhauser, Richard J., Clean Water Act Brief (July, 21 2008). Reg-Markets Center Brief No. 08-03. Available at SSRN: https://ssrn.com/abstract=1165904

Kenneth J. Arrow (Contact Author)

Stanford University - Department of Economics ( email )

Landau Economics Building
579 Serra Mall
Stanford, CA 94305-6072
United States

William J. Baumol

New York University - Stern School of Business, Berkley Center for Entrepreneurial Studies ( email )

New York, NY
United States
212-998-8943 (Phone)
212-995-3932 (Fax)

Leonard N. Stern School of Business - Department of Economics

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Jagdish Bhagwati

Columbia University - Council on Foreign Relations ( email )

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Michael J. Boskin

Stanford University - The Hoover Institution on War, Revolution and Peace ( email )

Stanford, CA 94305-6010
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(650) 723-6494 (Fax)

National Bureau of Economic Research (NBER)

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Robert Crandall

Brookings Institution ( email )

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AEI-Brookings Joint Center for Regulatory Studies

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Maureen L. Cropper

University of Maryland - Department of Economics

College Park, MD 20742
United States

Resources for the Future ( email )

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Washington, DC 20036
United States

Michael Greenstone

University of Chicago - Department of Economics ( email )

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Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Robert W. Hahn

University of Oxford, Smith School ( email )

Oxford
United Kingdom

Georgetown University

Georgetown Center for Business and Public Policy
Washington, DC 20057
United States

David Harrison

NERA Economic Consulting ( email )

United States
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Robert Glenn Hubbard

Columbia Business School - Finance and Economics ( email )

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New York, NY 10027
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HOME PAGE: http://www.gsb.columbia.edu/faculty/ghubbard

National Bureau of Economic Research (NBER)

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Alfred E. Kahn

National Economic Research Associates Inc. (NERA) (Deceased)

N/A

Robert E. Litan

Council on Foreign Relations (CFR) - Council on Foreign Relations- Washington D.C. ( email )

1777 F Street, NW
Washington, DC 20006
United States

Paul W. MacAvoy

Yale School of Management (Deceased)

Yale University, Yale Graduates Energy Study Group (Deceased)

James C. Miller III

George Mason University - Center for Study of Public Choice ( email )

Carow Hall MSN 1D3
Fairfax, VA 22030
United States
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703-993-2333 (Fax)

Albert (Nick) L. Nichols

NERA Economic Consulting ( email )

United States
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HOME PAGE: http://WWW.NERA.com

William A. Niskanen

Cato Institute ( email )

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Roger G. Noll

Stanford University - Department of Economics ( email )

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Stanford, CA 94305-6072
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Wallace Oates

University of Maryland - Department of Economics ( email )

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Resources for the Future

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Peter Passell

Milken Institute ( email )

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United States

Sam Peltzman

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

University of Chicago - Booth School of Business ( email )

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United States
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Paul R. Portney

University of Arizona - Eller College of Management ( email )

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P.O. Box 210108
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Harvey S. Rosen

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Princeton University - Department of Economics ( email )

001 Fisher Hall
Princeton, NJ 08544
United States

Milton Russell

University of Tennessee, Knoxville ( email )

Knoxville, TN 37996
United States

Thomas C. Schelling

University of Maryland ( email )

College Park
College Park, MD 20742
United States

Richard Schmalensee

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

Room E62-525
Cambridge, MA 02142
United States
617-253-2957 (Phone)
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Charles L. Schultze

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

V. Kerry Smith

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Vernon L. Smith

Chapman University - Economic Science Institute ( email )

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United States
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Chapman University School of Law ( email )

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Robert N. Stavins

Harvard University - Harvard Kennedy School (HKS) ( email )

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United States
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Resources for the Future

1616 P Street, NW
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National Bureau of Economic Research (NBER) ( email )

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United States

W. Kip Viscusi

Vanderbilt University - Law School ( email )

131 21st Avenue South
Nashville, TN 37203-1181
United States
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615-322-5953 (Fax)

HOME PAGE: http://law.vanderbilt.edu/faculty/viscusi.htm

National Bureau of Economic Research (NBER)

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Vanderbilt University - Department of Economics

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United States
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HOME PAGE: http://law.vanderbilt.edu/faculty/viscusi.htm

Vanderbilt University - Owen Graduate School of Management

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HOME PAGE: http://law.vanderbilt.edu/faculty/viscusi.htm

Vanderbilt University - Strategy and Business Economics ( email )

Nashville, TN 37203
United States

Lawrence J. White

New York University (NYU) - Leonard N. Stern School of Business, Department of Economics ( email )

44 West 4th Street
New York, NY NY 10012
United States

Richard J. Zeckhauser

National Bureau of Economic Research (NBER) ( email )

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United States
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617-496-3783 (Fax)

Harvard University - Harvard Kennedy School (HKS) ( email )

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