CBA1112 - DecisionMaking EconomicsProduction,Distribution,Consumptionof GoodsandServices IntheMarket, Knowledge>Price InRegulati

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Cost-Benefit Analysis and Environmental  Decision-Making • Economics – Production , Distribution , Consumption  of  Goods and Services. • Every Economic Decision Involves Trade-offs – How to allocate goods and services – In the Market, generally many transactions •Knowledge -> Price – In Regulations: Knowledge Problem •Impossible for regulators to know all relevant  information! •Setting “Prices” is difficult!
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Cost-Benefit Analysis • Analytical (“quantitative”) way to make societal or  business decisions • EO 12866 – CBA required prior to enacting major  regulations. • How it works: – Establish base situation (do nothing) – Establish time period – Compare alternatives – Choose policy with greatest overall benefit – In Economic Terms:  Marginal Benefit=Marginal Cost
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Cost-Benefit Analysis • Problem:   Evaluation and Quantification of Each Cost and  Benefit
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This note was uploaded on 10/25/2011 for the course ENVSCI 101 taught by Professor Don'tremember during the Spring '11 term at Rutgers.

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CBA1112 - DecisionMaking EconomicsProduction,Distribution,Consumptionof GoodsandServices IntheMarket, Knowledge>Price InRegulati

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