Define the term benefit-cost analysis as it relates to environmental regulation. How does this analysis method address external costs? Distinguish it from cost-effectiveness analysis

What will be an ideal response?


"A benefit-cost analysis begins by examining the need for the proposed regulation and then describes a range of alternative approaches. Afterward, it compares the estimated costs of the proposed action and the main alternatives to the benefits that will be achieved. All costs and benefits are given monetary values (where possible) and compared by means of what is commonly referred to as a benefit-cost (or cost-benefit) ratio. A favorable ratio for an action means that the benefits outweigh the costs, and the action is said to be cost effective. . . ."
"By including all of the costs and benefits of a project or a regulation, benefit-cost analysis effectively brings the externalities into the economic accounting. One suggestion for accomplishing this is the use of green fees or taxes." This is how benefit-cost analysis can include external costs like pollution, poor health of employees, or other negative aspects of doing business. "Cost-effectiveness analysis is an alternative option for evaluating the costs of regulations. Here the merits of the goal are accepted, and the question is: How can that goal be achieved at the least cost? To find out, alternative strategies for reaching the goal are analyzed for costs, and the least costly method is adopted."

Environmental & Atmospheric Sciences

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A. magnitude of the earthquake and the density of the seawater B. wave height and wind speed C. wavelength and 1.25 D. depth of the thermocline and water temperature E. the acceleration due to gravity and the depth of the ocean

Environmental & Atmospheric Sciences

Hurricane paths (tracks)

A) are highly smooth and stable. B) are easily predictable. C) always move to the northwest. D) can be highly erratic.

Environmental & Atmospheric Sciences

As one approaches the poles, the angle of incidence ________ and atmosphere attenuation ________.

A. decreases; decreases B. increases; increases C. decreases; increases D. increases; decreases

Environmental & Atmospheric Sciences

Dialects developed within the United States primarily because of

A) diffusion going westward. B) differences in the dialects among the original settlers along the Atlantic Coast colonies. C) the Civil War. D) a lack of available transportation between the regions. E) differences in the climate between the regions.

Environmental & Atmospheric Sciences