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 - 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: Suggested Citation
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)
Michael J. Boskin
Stanford University - The Hoover Institution on War, Revolution and Peace ( email )
Stanford, CA 94305-6010
United States
(650) 723-6482 (Phone)
(650) 723-6494 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Robert Crandall
Brookings Institution ( email )
1775 Massachusetts Ave. NW
Washington, DC 20036-2188
United States
202-797-6291 (Phone)
202-797-6181 (Fax)
AEI-Brookings Joint Center for Regulatory Studies
1150 17th Street, N.W.
Washington, DC 20036
United States
Maureen L. Cropper
University of Maryland - Department of Economics ( email )
College Park, MD 20742
United States
Resources for the Future ( email )
1616 P Street, NW
Washington, DC 20036
United States
Michael Greenstone
University of Chicago - Department of Economics ( email )
1126 East 59th Street
Chicago, IL 60637
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Robert W. Hahn
Technology Policy Institute ( email )
1401 Eye St. NW
Suite 505
Washington, DC 20005
United States
University of Oxford, Smith School ( email )
Oxford
United Kingdom
David Harrison
NERA Economic Consulting ( email )
United States
617-621-2612 (Phone)
617-621-0336 (Fax)
Robert Glenn Hubbard

Columbia University - Columbia Business School, Finance ( email )
3022 Broadway
New York, NY 10027
United States
HOME PAGE: http://www.gsb.columbia.edu/faculty/ghubbard
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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. ( email )
1777 F Street, NW
Washington, DC 20006
United States
Yale University, Yale Graduates Energy Study Group (Deceased)
James C. Miller
George Mason University - Center for Study of Public Choice ( email )
Carow Hall MSN 1D3
Fairfax, VA 22030
United States
703-993-2330 (Phone)
703-993-2333 (Fax)
William A. Niskanen
Cato Institute ( email )
1000 Massachusetts Avenue, N.W.
Washington, DC 20001-5403
United States
202-789-5236 (Phone)
202-842-3490 (Fax)
Roger G. Noll
Stanford University - Department of Economics ( email )
Landau Economics Building
579 Serra Mall
Stanford, CA 94305-6072
United States
650-723-2297 (Phone)
650-725-5702 (Fax)
Wallace Oates
University of Maryland - Department of Economics ( email )
Tydings Hall
College Park, MD 20742
United States
301 405-3496 (Phone)
Resources for the Future
1616 P Street, NW
Washington, DC 20036
United States
Peter Passell
Milken Institute ( email )
1250 Fourth Street
Santa Monica, CA 90401
United States
Sam Peltzman

University of Chicago, Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
Paul R. Portney
University of Arizona - Eller College of Management ( email )
McClelland Hall
P.O. Box 210108
Tucson, AZ 85721-0108
United States
Harvey S. Rosen

Princeton University - Department of Economics ( email )
001 Fisher Hall
Princeton, NJ 08544
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Milton Russell
University of Tennessee, Knoxville ( email )
The Boyd Center for Business and Economic Research
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)
617-258-6617 (Fax)
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 )
1 University Drive
Orange, CA 92866
United States
714-628-2830 (Phone)
Robert N. Stavins
Harvard University - Harvard Kennedy School (HKS) ( email )
79 John F. Kennedy Street
Cambridge, MA 02138
United States
617-495-1820 (Phone)
617-496-3783 (Fax)
Resources for the Future
1616 P Street, NW
Washington, DC 20036
United States
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
W. Kip Viscusi

Vanderbilt University - Law School ( email )
131 21st Avenue South
Nashville, TN 37203-1181
United States
615-343-7715 (Phone)
615-322-5953 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Vanderbilt University - College of Arts and Science - Department of Economics
Box 1819 Station B
Nashville, TN 37235
United States
(615) 343-7715 (Phone)
(615) 343-5953 (Fax)
HOME PAGE: http://as.vanderbilt.edu/economics/bio/wkip-viscusi/

Vanderbilt University - Owen Graduate School of Management
401 21st Avenue South
Nashville, TN 37203
United States
(615) 343-7715 (Phone)
(615) 343-5953 (Fax)
HOME PAGE: http://business.vanderbilt.edu/bio/w-kip-viscusi/
Lawrence J. White

New York University (NYU) - Leonard N. Stern School of Business, Department of Economics ( email )
44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States
Stern School of Business, New York University ( email )
44 West 4th Street
New York, NY 10012
United States
212-998-0880 (Phone)
212-995-4218 (Fax)
Richard J. Zeckhauser
Harvard University - Harvard Kennedy School (HKS) ( email )
79 John F. Kennedy Street
Cambridge, MA 02138
United States
617-495-1174 (Phone)
617-384-9340 (Fax)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
617-495-1174 (Phone)
617-496-3783 (Fax)
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