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Oct. 14, 2021 by James Goodwin

A Post-Neoliberal Regulatory Analysis for a Post-Neoliberal World

This post was originally published on LPE Blog and is part of a symposium on the future of cost-benefit analysis. Reprinted with permission.

Over the last 40 years, the U.S. regulatory system has played an increasingly influential role in redefining our political and economic relationships in fundamentally neoliberal terms. A key but often overlooked institutional force behind this development is the peculiar form of cost-benefit analysis that now predominates in regulatory practice. Building a new regulatory system befitting our vision of a post-neoliberal America requires a formal rejection of prevailing cost-benefit analysis in favor of a radically different approach—one that invites public participation, permits open and fair contestation of competing values at the heart of policy debates, and recognizes and honors our social interdependencies.

The predominant form of cost-benefit analysis—one embraced by neoliberals—finds its theoretical underpinning in the controversial ideology of welfare economics. This theory holds maximized economic growth as its prime directive, to the exclusion of other important social values, such as justice and fairness. Cost-benefit analysis purports to increase welfare by promoting "socially optimal" regulations—that is, regulations that are designed to achieve maximum net benefits.

How do we determine which regulations meet this …

Oct. 11, 2021 by Melissa Lutrell, Jorge Roman-Romero
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This post was originally published on LPE Blog and is part of a symposium on the future of cost-benefit analysis. Reprinted with permission.

Cost-benefit analysis (CBA) is inherently classist, racist, and ableist. Since these are foundational problems with CBA, and are not simply issues with its implementation, they can never be fixed by mere methodological improvements. Instead, the ongoing modernization of centralized regulatory analyses must focus on "moving beyond" CBA, and not on fixing it or improving it. Thus, in implementing President Biden's memorandum on Modernizing Regulatory Review (the Biden Memorandum), the Office of Management and Budget (OMB) should make explicit that regulatory review no longer requires CBA, even—as will be true in the typical case—when regulatory review does demand economic analysis as part of a holistic, multi-factor regulatory impact analysis.

The Biden memorandum endorses a series of goals that are not premised in the …

Sept. 30, 2021 by Lisa Heinzerling
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This post was originally published on LPE Blog and is part of a symposium on the future of cost-benefit analysis. Reprinted with permission.

President Biden has made climate change and racial justice central themes of his presidency. No doubt with these problems in mind, he has signaled a desire to rethink the process and substance of White House review of agencies' regulatory actions. On his very first day in office, Biden ordered administrative agencies to ensure that this review does not squelch regulatory initiatives nor brush aside "racial justice, environmental stewardship, human dignity, equity, and the interests of future generations." At the same time, however, Biden reaffirmed the "basic principles" of a Clinton-era executive order on White House regulatory review, subjecting agencies' major rules to a cost-benefit test.

These twin inclinations – toward acting boldly on climate change and racial justice, and toward judging regulation using cost-benefit …

Sept. 23, 2021 by Joel Mintz
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Addresses by national leaders to the United Nations General Assembly are often broad expressions of lofty ideals, and President Joe Biden's speech Tuesday fell squarely into that category. It covered an extraordinary panoply of global challenges and policy concerns, including controlling the COVID-19 pandemic, rebuilding and strengthening global alliances and regional initiatives, curbing terrorism, protecting human rights (including the rights of women and workers) and lifting up democracy. Biden also committed the United States to advancing human dignity, combating corruption and seeking peace in areas of conflict around the world.

Of particular importance were Biden's remarks regarding the global climate change crisis. Observing that "we stand at an inflection point in history," Biden outlined a stark choice between "meeting the threat of climate change" or suffering "the merciless march of ever-worsening droughts and floods, more intense fires …

Sept. 10, 2021 by Daniel Farber
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This post was originally published on Legal Planet. Reprinted with permission.

The Biden administration is looking to make big regulatory changes, not least regarding climate change. Yet the White House office overseeing regulations is vacant. The obscurely named Office of Regulatory Affairs and Information (OIRA) has to sign off on all significant regulations. Even the dilatory Donald Trump had nominated a permanent administrator by July of his first year. Biden's delay in filling this important office is hard to defend.

The main reason for the delay is probably that Biden doesn't have the OIRA administrator's boss in place, either. Biden's nominee to head the Office of Management and Budget (OMB) had to be withdrawn when her Senate support evaporated. That was on March 2, however, and there's still no new OMB nomination six months later. Maybe the reason is an inability to find a candidate who can …

Aug. 17, 2021 by Sidney Shapiro, Melissa Lutrell
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The surging COVID-19 delta variant is sending thousands of people to the hospital, killing others, and straining several states' hospital systems to their breaking point. The climate crisis is hurting people, communities and countries as we write this piece, with apocalyptic wildfires, crippling droughts and raging floodwaters. Systemic racism continues unabated, leading to vast economic and environmental injustices. It's beyond time for urgent action, but to get there, the federal government must reform the opaque, biased method it uses to evaluate our nation's public health, economic and environmental protections.

The day President Joe Biden took office, he ordered executive branch agencies to evaluate and reform the regulatory review process to “ensure swift and effective Federal action” to address the urgent problems we currently face. The administration is unlikely to live up to this goal unless the White House addresses …

Aug. 9, 2021 by Alina Gonzalez
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In his first week of office, President Joe Biden signed an executive order, "Tackling the Climate Crisis at Home and Abroad," that responds to climate change with an emphasis on environmental justice. Notably, the order creates a government-wide "Justice40 initiative," which sets a goal for disadvantaged communities most impacted by climate change and pollution to receive at least 40 percent of overall benefits from federal investments in climate and clean energy.

In attempts to provide key foundational principles for the initiative, the White House recently released a draft guidance document that details how federal agencies should advance the programs covered by the Justice40 Initiative. While the interim guidance provides some direction for the scope of the initiative, the commitment to direct 40 percent of spending to disadvantaged communities is not so straightforward.

The hope of Justice40 is that frontline communities, the ones most burdened …

July 22, 2021 by Joel Mintz
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Recent events have dramatized the urgent need for prompt and bold action to respond to climate change. Raging rivers in Germany and Belgium, unheard of "heat domes" over large sections of North America, and uncontrolled wildfires and flooding around the globe, have made it absolutely clear that humankind must quickly limit the emission of greenhouse gases and adapt to the increasingly calamitous consequences of climate disruption.

In view of this situation, what is and ought to be the substance of environmental leadership? At the outset, it bears mention that no single environmental leader can take on the challenge of climate change alone. What is needed instead is cooperation among many leaders. Leadership must come from a number of places, including governments, private enterprises, non-governmental organizations (NGOs) and concerned individuals.

Later this year, the leaders of nearly all nations will …

July 21, 2021 by James Goodwin
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The Biden administration's Environmental Protection Agency (EPA) is currently seeking public input on its efforts to revamp an important Clean Air Act program called the Risk Management Plan (RMP) rule for facilities that produce, store, or use large amounts of dangerous chemicals. It is meant to prevent catastrophes — like the 2017 Arkema explosion in Crosby, Texas — which not only put human lives and health in danger (especially for the communities of color that are disproportionately overrepresented in the shadows of these facilities), but also cause costly disruption for local economies.

My CPR colleagues contributed to a timely new policy brief explaining how the EPA must be particularly attentive to the new and unique threats posed by climate change as it goes about revamping its RMP rule to prevent "double disasters" that will become increasingly common unless chemical facilities are forced to take preventative action. They presented the …

July 19, 2021 by Colin Hughes
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U.S. Environmental Protection Agency (EPA) Administrator Michael Regan recently announced that $50 million from the American Rescue Plan will go toward environmental justice programs at the agency. This award will be accompanied by another $50 million to enhance air quality monitoring to target health disparities. This funding will double the amount of grant dollars for EPA’s environmental justice programs by adding $16.7 million in grants and funding for other programs such as school bus electrification, expanded environmental enforcement, and drinking water safety improvements.

Increased funding for environmental justice programs will foster stronger environmental protections for communities — often low-income communities and communities of color — that are forced to combat a disproportionate share of pollution, toxic exposures, and related health and economic consequences. Investment in these communities seeks to reconcile the gap left by environmental racism and a lack of opportunities to meaningfully engage in zoning …

CPR HOMEPAGE
More on CPR's Work & Scholars.
Oct. 14, 2021

A Post-Neoliberal Regulatory Analysis for a Post-Neoliberal World

Oct. 11, 2021

Modernizing Regulatory Review Beyond Cost-Benefit Analysis

Sept. 30, 2021

Climate Change, Racial Justice, and Cost-Benefit Analysis

Sept. 23, 2021

The Hill Op-ed: Biden's Idealistic UN Message on Climate Change

Sept. 10, 2021

Vacancy

Aug. 17, 2021

The Hill Op-ed: Regulatory Analysis Is Too Important to Be Left to the Economists

Aug. 9, 2021

How Big of a Deal Is Biden's Justice40 Initiative?