Regulatory Impact Analysis

A Tool for Policy Coherence

image of Regulatory Impact Analysis

Regulatory impact analysis (RIA) is a systemic approach to critically assessing the positive and negative effects of proposed and existing regulations and non-regulatory alternatives. This publication brings together recent OECD research and analysis concerning methodological issues and country experiences with RIA. The collected papers cover a number of challenges to the effectiveness of RIA including: systemic factors which influence the quality of RIA; methodological frameworks that can assist RIA to improve regulation; guidance on using RIA to avoid unnecessary regulation of competitive markets; and a review of the use of RIA in the regulation of corporate governance across a number of OECD countries. Taken together, this publication provides valuable, practical guidance on how to improve the performance of RIA systems to promote economic welfare through better quality regulation.  

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Methodological Frameworks for Regulatory Impact Analysis

Valuation, Risk and Benefit-Cost Analysis

Chapter 3 examines the methodological frameworks for RIA. It overlaps with some similar material on the potential for methodological approaches to influence the quality of RIA, but expands considerably on the examination of the specific technical aspects of preparing RIA. RIA is primarily about improving evidence-based decision making in public policy. Chapter 3 focuses on those methodological issues which have the potential for substantial impact on the quality of RIA and those which are the most controversial. It reviews a range of RIA guidance material from within OECD countries to compare the differences in approach and consider specific areas for improvement. Topics include: the establishment of threshold tests to justify RIA; analytical methods including benefit-cost analysis, breakeven analysis and multicriteria analysis; valuation methods; and risk assessment.

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