Clean Water Act Brief

27 Pages Posted: 27 Jul 2008

See all articles by Kenneth J. Arrow

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 - Law School

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; Becker Friedman Institute for Economics; National Bureau of Economic Research (NBER)

Robert W. Hahn

Technology Policy Institute; University of Oxford, Smith School

David Harrison

NERA Economic Consulting

R. Glenn Hubbard

Columbia University - Columbia Business School, Finance; 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

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

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 - College of Arts and Science - Department of Economics; Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - Strategy and Business Economics

Lawrence J. White

Stern School of Business, New York University; 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 and Cropper, Maureen L. and Greenstone, Michael and Hahn, Robert W. and Harrison, David and Hubbard, Robert Glenn and Kahn, Alfred E. and Litan, Robert E. and MacAvoy, Paul W. and Miller, James C. and Nichols, Albert (Nick) L. and Niskanen, William A. and Noll, Roger G. and Oates, Wallace and Passell, Peter and Peltzman, Sam and Portney, Paul R. 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 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 )

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William J. Baumol

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

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Jagdish Bhagwati

Columbia University - Law School ( email )

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Michael J. Boskin

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

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Resources for the Future ( email )

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Michael Greenstone

University of Chicago - Department of Economics ( email )

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Becker Friedman Institute for Economics ( email )

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National Bureau of Economic Research (NBER)

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Robert W. Hahn

Technology Policy Institute ( email )

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University of Oxford, Smith School ( email )

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David Harrison

NERA Economic Consulting ( email )

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Robert Glenn Hubbard

Columbia University - Columbia Business School, Finance ( email )

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National Bureau of Economic Research (NBER)

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Alfred E. Kahn

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Robert E. Litan

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

1777 F Street, NW
Washington, DC 20006
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Paul W. MacAvoy

Yale School of Management (Deceased)

Yale University, Yale Graduates Energy Study Group (Deceased)

James C. Miller

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

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Cato Institute ( email )

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Stanford University - Department of Economics ( email )

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Resources for the Future

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Milken Institute ( email )

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Sam Peltzman

University of Chicago, Booth School of Business ( email )

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Paul R. Portney

University of Arizona - Eller College of Management ( email )

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Harvey S. Rosen

Princeton University - Department of Economics ( email )

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Milton Russell

University of Tennessee, Knoxville ( email )

The Boyd Center for Business and Economic Research
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Thomas C. Schelling

University of Maryland ( email )

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

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Charles L. Schultze

Brookings Institution ( email )

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V. Kerry Smith

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

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National Bureau of Economic Research (NBER)

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Vernon L. Smith

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Resources for the Future

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W. Kip Viscusi

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National Bureau of Economic Research (NBER)

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