National Ambient Air Quality Standards (Naaqs) Brief
23 Pages Posted: 17 Nov 2006
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; affiliation not provided to SSRN (deceased)
John D. Graham
Canadian Investment Review - Rogers Media
Wendy Gramm
affiliation not provided to SSRN
Robert W. Hahn
Technology Policy Institute; University of Oxford, Smith School
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 - Princeton 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
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 University - Columbia Business School, Finance; National Bureau of Economic Research (NBER)
Laura D'Andrea Tyson
Haas School of Business, UC Berkeley
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: Suggested Citation
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)
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
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)
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Cambridge, MA 02138
United States
David F. Bradford
Princeton University, Woodrow Wilson School ( email )
Department of Economics
Princeton, NJ 08544-1021
United States
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609-258-2809 (Fax)
NBER
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United States

CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
HOME PAGE: http://www.CESifo.de
Robert Crandall
Brookings Institution ( email )
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United States
202-797-6291 (Phone)
202-797-6181 (Fax)
AEI-Brookings Joint Center for Regulatory Studies
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United States
Maureen L. Cropper
University of Maryland - Department of Economics ( email )
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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Washington, DC 20036
United States
202-862-5800 (Phone)
202-862-5177 (Fax)
AEI-Brookings Joint Center for Regulatory Studies ( email )
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Washington, DC 20036
United States
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George Eads
Charles River Associates (CRA) ( email )
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Ste. 700
Washington, DC 20004
United States
Milton Friedman
Mendocino College ( email )
1000 Hensley Creek Rd.
Ukiah, CA 95482
United States
affiliation not provided to SSRN (deceased)
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)
Technology Policy Institute ( email )
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Suite 505
Washington, DC 20005
United States
University of Oxford, Smith School ( email )
Oxford
United Kingdom
Paul L. Joskow

Alfred P. Sloan Foundation ( email )
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United States
212-649-1649 (Phone)
Massachusetts Institute of Technology (MIT) - Department of Economics ( email )
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617-253-6664 (Phone)
617-258-7070 (Fax)
Alfred E. Kahn
National Economic Research Associates Inc. (NERA) (Deceased)
Paul R. Krugman
Princeton University - Princeton 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)
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Cambridge, MA 02138
United States
Lester B. Lave
Carnegie Mellon University - David A. Tepper School of Business (Deceased)
Randall Lutter
American Enterprise Institute (AEI) ( email )
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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
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 )
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Washington, DC 20001-5403
United States
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202-842-3490 (Fax)
William D. Nordhaus
Yale University - Department of Economics ( email )
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203-432-5779 (Fax)
National Bureau of Economic Research (NBER)
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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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United States
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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United States
Paul R. Portney
University of Arizona - Eller College of Management ( email )
McClelland Hall
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United States
Alice Rivlin
Brookings Institution ( email )
1775 Massachusetts Ave, NW
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United States
Milton Russell
University of Tennessee, Knoxville ( email )
The Boyd Center for Business and Economic Research
Knoxville, TN 37996
United States
Richard Schmalensee

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )
Room E62-525
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United States
617-253-2957 (Phone)
617-258-6617 (Fax)
Charles L. Schultze
Brookings Institution ( email )
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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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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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Resources for the Future
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National Bureau of Economic Research (NBER) ( email )
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Joseph E. Stiglitz

Columbia University - Columbia Business School, Finance ( email )
3022 Broadway
814 Uris Hall
New York, NY 10027
United States
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(212) 662-8474 (Fax)
HOME PAGE: http://www.josephstiglitz.com
National Bureau of Economic Research (NBER) ( email )
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W. Kip Viscusi

Vanderbilt University - Law School ( email )
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United States
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National Bureau of Economic Research (NBER)
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Vanderbilt University - Department of Economics
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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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