Critique and evaluate the agency’s cost-benefit analysis of the proposal. 3-5 pages. MLA format. 12pt. double space.
- Audience: Professor and TA
- Your paper should make clear how the agency evaluates the benefits and costs of the proposal.
- You should use the lecture material about the impact of government interventions, and what you and your group have learned from the comments about the potential effects of the proposal. You should evaluate:
- The basis for and the reasonableness of the agency’s assumptions, especially its assumptions about how effective the rule will be.
- How the agency’s analysis squares with what you (and the rest of your group) have learned from the comments about costs and benefits.
EPA published an economically significant proposed rule intended to reduce CO2 emissions from existing power plants. EPA expects annual compliance costs of $5.5 billion, climate benefits of $17 billion, and co-benefits of between $16 billion – $37 billion in 2020. Comments are due on October 16. Read the agency’s 375-page regulatory impact analysis here.