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Ignoring Ancillary Benefits Ignoring Ancillary Benefits
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Challenging The Claim That Ancillary Benefits Are Rare Challenging The Claim That Ancillary Benefits Are Rare
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INCLUDING ANCILLARY BENEFITS INCLUDING ANCILLARY BENEFITS
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Fallacy 1: All Unintended Consequences Are Bad
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Published:April 2017
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Abstract
The first fallacy of current cost-benefit analysis is that all unintended consequences are bad. In the past few decades, cost-benefit analysis has become more sophisticated, taking the collateral consequences of regulatory decisions into account. Theoretically, this is a good thing—if a particular regulation would save an endangered species but would have the collateral effect of wiping out another, that collateral cost should be included in the initial analysis. But proponents of current cost-benefit analysis tend to look only at negative collateral consequences. In order to be balanced, cost-benefit analysis must acknowledge the ancillary benefits of regulations as well.
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