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Benefit-Cost Analysis in EU Chemicals Legislation: Experiences from over 100 REACH Applications for Authorisation

Published online by Cambridge University Press:  12 April 2018

Stavros Georgiou
Affiliation:
U.K. Health and Safety Executive & Visiting Research Fellow, Applied Economics, Marketing and Development Group, School of Agriculture, Policy and Development, University of Reading, U.K.
Christoph M. Rheinberger*
Affiliation:
European Chemicals Agency, Risk Management Implementation Unit, Annankatu 18, Helsinki, Finland 00121, e-mail: rheinberger.cm@gmail.com
Matti Vainio
Affiliation:
European Chemicals Agency, Risk Management Implementation Unit, Annankatu 18, Helsinki, Finland 00121

Abstract

In this paper we review the benefit-cost analyses (BCAs) made to support applications for authorisations under the EU’s REACH Regulation on hazardous chemicals. Experiences from over 100 cases suggest that there are a number of informational and methodological challenges to overcome in these BCAs. In particular, we find that many REACH applicants have had problems explaining the societal relevance of the regulatory impacts expected to affect them and other market actors. Adapting the framework for regulatory impact assessment proposed by Dudley et al. [(2017). Consumer’s Guide to Regulatory Impact Analysis: Ten Tips for Being an Informed Policymaker. Journal of Benefit-Cost Analysis, 8, 187–204], we discuss these impacts from a welfare economics perspective and make suggestions on how to improve current practices in BCA applied to chemicals risk management. From this discussion we then distill a number of topics that deserve more attention in applied BCAs under the REACH Regulation.

Type
Article
Copyright
© Society for Benefit-Cost Analysis 2018 

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Footnotes

We thank Jack de Bruijn, Bill Hoyt, Kalle Kivelä, Maria Ottati and three anonymous reviewers for valuable comments on a previous version of this paper. The views expressed in the paper are solely those of the authors and do not represent official views or positions of the European Chemicals Agency or the U.K. Health and Safety Executive.

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