National Ambient Air Quality Standards (Naaqs) Brief

23 Pages Posted: 17 Nov 2006

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

Elizabeth E. Bailey

University of Pennsylvania - Business & Public Policy Department

Robert E. Litan

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

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)

David F. Bradford

Princeton University, Woodrow Wilson School; NBER; CESifo (Center for Economic Studies and Ifo Institute)

Robert W. Crandall

Brookings Institution; AEI-Brookings Joint Center for Regulatory Studies

Maureen Cropper

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

Christopher DeMuth

American Enterprise Institute (AEI); AEI-Brookings Joint Center for Regulatory Studies

George Eads

Charles River Associates (CRA)

Milton Friedman

Mendocino College; Deceased

John D. Graham

Canadian Investment Review - Rogers Media

Wendy Gramm

affiliation not provided to SSRN

Robert W. Hahn

University of Oxford, Smith School; Georgetown University

Paul L. Joskow

Alfred P. Sloan Foundation; Massachusetts Institute of Technology (MIT) - Department of Economics

Alfred E. Kahn

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

Paul R. Krugman

Princeton University - Woodrow Wilson School of Public and International Affairs; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Lester Lave

Carnegie Mellon University - David A. Tepper School of Business (Deceased)

Randall Lutter

American Enterprise Institute (AEI); AEI-Brookings Joint Center for Regulatory Studies

Paul W. MacAvoy

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

Paul W. McCracken

University of Michigan, Stephen M. Ross School of Business

James C. Miller

George Mason University - Center for Study of Public Choice

William A. Niskanen

Cato Institute

William D. Nordhaus

Yale University - Department of Economics; Cowles Foundation, Yale University; National Bureau of Economic Research (NBER)

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

Alice Rivlin

Brookings Institution

Milton Russell

University of Tennessee, Knoxville

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)

Robert M. Solow

Massachusetts Institute of Technology (MIT) - Department of Economics

Robert N. Stavins

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

Joseph E. Stiglitz

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

Laura D'Andrea Tyson

London Business School

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

Murray Weidenbaum

Washington University in St. Louis - Murray Weidenbaum Center on the Economy, Government, and Public Policy

Janet L. Yellen

University of California, Berkeley - Economic Analysis & Policy Group

Richard J. Zeckhauser

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

Date Written: July 2000

Abstract

As we understand it, the D.C. Circuit did not allow the EPA to consider the costs of complying with ozone and PM NAAQS. As we further understand it, this legal ruling can be overturned only by this Court. As economists, we believe that the D.C. Circuit's ruling not allowing the EPA to consider important information relating to the consequences of its regulatory actions is economically unsound. Without delving into the legal aspects of the case, we present below why we think the Court should allow the EPA to consider costs in setting standards. In particular, we believe that, as a general principle, regulators should be allowed to consider explicitly the full consequences of their regulatory decisions. These consequences include the regulation's benefits, costs, and any other relevant factors.

Keywords: EPA, D.C. Circuit, regulatory actions

JEL Classification: H00

Suggested Citation

Arrow, Kenneth J. and Baumol, William J. and Bailey, Elizabeth E. and Litan, Robert E. and Bhagwati, Jagdish and Boskin, Michael J. and Bradford, David F. and Crandall, Robert and Cropper, Maureen L. and DeMuth, Christopher and Eads, George and Friedman, Milton and Graham, John D. and Gramm, Wendy and Hahn, Robert W. and Joskow, Paul L. and Kahn, Alfred E. and Krugman, Paul R. and Lave, Lester B. and Lutter, Randall and MacAvoy, Paul W. and McCracken, Paul W. and Miller, James C. and Niskanen, William A. and Nordhaus, William D. and Oates, Wallace and Passell, Peter and Peltzman, Sam and Portney, Paul R. and Rivlin, Alice and Russell, Milton and Schmalensee, Richard and Schultze, Charles L. and Smith, V. Kerry and Solow, Robert M. and Stavins, Robert N. and Stiglitz, Joseph E. and Tyson, Laura D'Andrea and Viscusi, W. Kip and Weidenbaum, Murray and Yellen, Janet L. and Zeckhauser, Richard J., National Ambient Air Quality Standards (Naaqs) Brief (July 2000). AEI-Brookings Joint Center Working Paper No. B00-01. Available at SSRN: https://ssrn.com/abstract=945378 or http://dx.doi.org/10.2139/ssrn.945378

Kenneth J. Arrow

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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New York, NY 10003
United States

Elizabeth E. Bailey

University of Pennsylvania - Business & Public Policy Department ( email )

3641 Locust Walk
Philadelphia, PA 19104-6372
United States

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

Jagdish Bhagwati

Columbia University - Law School ( email )

435 West 116th Street
New York, NY 10009

Michael J. Boskin

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

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

National Bureau of Economic Research (NBER)

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David F. Bradford

Princeton University, Woodrow Wilson School ( email )

Department of Economics
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United States
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609-258-2809 (Fax)

NBER

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CESifo (Center for Economic Studies and Ifo Institute)

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Germany

HOME PAGE: http://www.CESifo.de

Robert Crandall

Brookings Institution ( email )

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United States
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202-797-6181 (Fax)

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

Christopher DeMuth

American Enterprise Institute (AEI) ( email )

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United States
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202-862-5177 (Fax)

AEI-Brookings Joint Center for Regulatory Studies ( email )

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George Eads

Charles River Associates (CRA) ( email )

1201 F. St. NW
Ste. 700
Washington, DC 20004
United States

Milton Friedman

Mendocino College ( email )

1000 Hensley Creek Rd.
Ukiah, CA 95482
United States

Deceased

N/A

John D. Graham

Canadian Investment Review - Rogers Media

United States

Wendy Gramm

affiliation not provided to SSRN

No Address Available

Robert W. Hahn (Contact Author)

University of Oxford, Smith School ( email )

Oxford
United Kingdom

Georgetown University

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

Paul L. Joskow

Alfred P. Sloan Foundation ( email )

630 Fifth Avenue
Suite 2550
New York, NY 10111
United States
212-649-1649 (Phone)

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

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United States
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617-258-7070 (Fax)

Alfred E. Kahn

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

N/A

Paul R. Krugman

Princeton University - Woodrow Wilson School of Public and International Affairs ( email )

Princeton University
Princeton, NJ 08544-1021
United States
609-258-4570 (Phone)
609-258-2809 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Lester B. Lave

Carnegie Mellon University - David A. Tepper School of Business (Deceased)

N/A

Randall Lutter

American Enterprise Institute (AEI) ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States
202-862-7177 (Phone)

AEI-Brookings Joint Center for Regulatory Studies

1150 17th Street, N.W.
Washington, DC 20036
United States

Paul W. MacAvoy

Yale School of Management (Deceased)

Yale University, Yale Graduates Energy Study Group (Deceased)

Paul W. McCracken

University of Michigan, Stephen M. Ross School of Business

701 Tappan Street
Ann Arbor, MI MI 48109
United States

James C. Miller

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

Carow Hall MSN 1D3
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United States
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703-993-2333 (Fax)

William A. Niskanen

Cato Institute ( email )

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Washington, DC 20001-5403
United States
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William D. Nordhaus

Yale University - Department of Economics ( email )

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Cowles Foundation, Yale University ( email )

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National Bureau of Economic Research (NBER)

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Wallace Oates

University of Maryland - Department of Economics ( email )

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United States
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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

University of Chicago, Booth School of Business ( email )

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National Bureau of Economic Research (NBER)

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Paul R. Portney

University of Arizona - Eller College of Management ( email )

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Alice Rivlin

Brookings Institution ( email )

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Milton Russell

University of Tennessee, Knoxville ( email )

The Boyd Center for Business and Economic Research
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United States

Richard Schmalensee

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

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United States
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617-258-6617 (Fax)

Charles L. Schultze

Brookings Institution ( email )

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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)

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Cambridge, MA 02138
United States

Robert M. Solow

Massachusetts Institute of Technology (MIT) - Department of Economics ( 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

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National Bureau of Economic Research (NBER) ( email )

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Joseph E. Stiglitz

Columbia Business School - Finance and Economics ( email )

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Laura D'Andrea Tyson

London Business School ( email )

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W. Kip Viscusi

Vanderbilt University - Law School ( email )

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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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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 )

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Murray Weidenbaum

Washington University in St. Louis - Murray Weidenbaum Center on the Economy, Government, and Public Policy

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Janet L. Yellen

University of California, Berkeley - Economic Analysis & Policy Group ( email )

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Richard J. Zeckhauser

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

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National Bureau of Economic Research (NBER) ( email )

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