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Cost Benefit Analysis of Industrial Noise Regulation

Published online by Cambridge University Press:  01 January 2023

Stephen Holland  and
Jean Cross
Stephen Holland
Affiliation:
Worksafe Australia
Jean Cross
Affiliation:
Department Safety Science, The University of New South Wales
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Abstract

This paper examines the application of the techniques of economic analysis to occupational health and safety regulations using occupational noise as an example.

The paper explores the extent to which economic impact studies are practically feasible and useful in relation to occupational health and safety legislation. Six studies of the same regulatory change, from four countries were analysed. The results of these studies ranged from a strongly negative to a significantly positive net present value, depending on the assumptions made. The factor which had the greatest influence on these differences was the way in which benefits are costed.

It is shown that in the field of Occupational Health and Safety, economic analysis does not produce a single valid net present value or benefit to cost ratio on which a decision to legislate can sensibly be based. However the analysis can, if properly directed provide useful information on factors which will enable organisations to optimise their response to the regulation and authorities to introduce regulations in a way which does not bear with unreasonable weight on specific sectors of the community.

Type
Research Article
Information
The Economic and Labour Relations Review , Volume 6 , Issue 1 , June 1995 , pp. 105 - 124
Copyright
Copyright © The Author(s) 1995

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Footnotes

*

The views expressed in this paper are those of the authors and do not necessarily reflect those of the National Occupational Health and Safety Commission (Worksafe Australia).

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