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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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Options for Integrating Competition Assessment into Regulatory Impact Analysis

Chapter 4 is intended to assist policy officials with responsibility for conducting RIA to include a competition policy analysis. Regulation which unnecessarily restricts competition imposes costs on society and the inclusion of a competition analysis can avoid these costs. Chapter 4 addresses how to identify policies that merit a competition assessment and how to conduct a competition assessment within a RIA on possible regulatory approaches. For a range of regulatory approaches, it discusses the expected benefits of each approach, the potential impact on competition, where it may be used appropriately and potential policy alternatives for achieving the same objectives at a lower cost to society. It also provides guidance on how to get maximum value by integrating competition assessment processes within the regulatory policy cycle, and argues that significant public benefits can be obtained from even a relatively small investment of public sector resources if it is done systematically.

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