Risks, costs, and lives saved

"Since the creation of the Environmental Protection Agency in 1970, the United States has embarked on a major regulatory effort to protect the environment, health, and safety. That effort has produced some unquestionably desirable results - such as cleaner rivers and cleaner air - but also much controversy." "We have learned a great deal about regulation since 1970. Perhaps most important, we have learned that regulations have significant costs, not just benefits, and that analysis of risk is an indispensable component of sensible regulation. It has become clear that more sensitivity to costs not only would yield greater net social benefits but would actually improve regulatory outcomes such as a cleaner and safer environment." "Making that statement does not, however, imply that the matter is settled. Profound disagreements remain - more among the public and politicians than among economists and scientists - about the implications of being more aware of costs and of assessing comparative risk in making regulations. Emotions often run high, as recent congressional debates over the major regulatory reform legislation have made amply clear. Most noneconomists, for example, have an in