The Revenue of Regulation
Bubeyon Magazine 2012, 8, vol. 32, p. 21-23
3 Pages Posted: 6 Sep 2012
Date Written: September 6, 2012
The paper argues that a second generation of regulatory policies seems to be in the making. A key feature of these new policies is that they do not have a more or less one-sided, ideological, approach to the phenomenon of regulation, as did first generation regulatory policies. Regulation is no longer necessarily a bad and costly thing, in this vein of thought, but there is the recognition that it produces benefits for society and markets as well. In these most recent approaches to regulatory policies the underlying idea is to come up with an even more evidence-based balancing of costs, benefits and risks, using state of the art scientific methods for the appraisal. Most first generation regulatory policies have come up with more or less objective methods to assess the (direct and indirect) costs of regulation (for instance the standard cost model used in the EU) but there are very few objective methods to assess the benefit of regulation. First generation and second generation regulatory policies do not always go well together and do sometimes in fact collide in a sort of a clash of cultures and beliefs.
Keywords: better regulation, impact assessment, appraisal methods, risk assessment, smart regulation
JEL Classification: G18, K20, K10
Suggested Citation: Suggested Citation