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114262 1 (1981-01-01)

handle is hein.gao/gaobaduzn0001 and id is 1 raw text is: The Cost and Benefits of Government Regulation: An Environmental Dilemma Henry Eschwege Mr. Eschwege serves as the director, Com- munity and Economic Development Divi- sion He joined GAO in 1956 after serving on the staff of a public accounting firm in New York City. Mr Eschwege received a B S. degree in accounting, magna cum laude, from New York University, and com- pleted the Program for Management Development at Harvard Business School He is a CPA (New York) and a member of the New York State Society of CPAs and the National Association of Accountants Mr Eschwege received the GAO Meritorious Service Award in 1965 and 1967 and the GAO Distinguished Service Award in 1968. RiU1- The cost of Government regula- tion has received considerable at- tention by the General Accounting Office. We have expressed some strong and sometimes controversial views on the subject, but we have come to our conclusions by pain- stakingly gathering the relevant evidence without any preconceived notion or biases. As an arm of the Congress, GAO Is well insulated from the pressures of special inter- est groups. This insulation ensures GAO's ability to conduct indepen- dent reviews and report the results as we see them. For example, GAO was an early advocate of less regulation when it projected con- siderable savings if airline regula- tions were relaxed. However, we have also seen a need for tighter regulations to ensure the quality and safety of the food we eat. Basically, there are three princi- pal questions which need to be addressed in the broad spectrum of Government regulation: GAO Review/Winter 1981 * What is the nature of environ- mental regulation? * What does it cost, and what are the benefits? e How can environmental regula- tion be simplified and the cost re- duced?-1 Nature of Environmental Regulation _Environmental regulation.-which places limits on the amount of pol- lution that can be tolerated without endangering the health and welfare of human .beings and ecological systems -4Lgenerally takes two forms:technology-based regulation and risk-assessment-based regula- tion Both forms are often contro- versial and complex. Technology-Based Regulation 'In technology-based regulation, 28 I

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