National Ambient Air Quality Standards (Naaqs) Brief
Posted: 17 Nov 2006
Date Written: July 2000
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
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