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Case 4: Use of Demand Schedules in Regulatory Impact Analyses

Case 4: Use of Demand Schedules in Regulatory Impact Analyses

pp. 110-118

Authors

, University of British Columbia, Vancouver, , University of Maryland, Baltimore County, , Simon Fraser University, British Columbia, , University of Wisconsin, Madison
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Summary

Although many countries require that proposed regulations be subjected to CBA, the United States does so most extensively in its regulatory process.1 In 1981 President Ronald Reagan issued an executive order that established the framework for the mandatory use of CBA in the rule-making process by federal agencies.2 His Executive Order 12291 introduced the Regulatory Impact Analysis (RIA) as a requirement for major rules – those that would have an annual effect on the economy of $100 million or more in terms of costs, benefits, or transfers. Agencies were directed to conduct RIAs to guide selection of rules that offered the largest net benefits.

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