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The Economic Cost of Environmental Legislation: Looking at the German Standard Cost Model Measurement and the EU Action Programme for the Reduction of Administrative Burdens from an Environmental Law Perspective

Jochen Gebauer

elni Review 2008, Issue 1,  pp. 25-38. https://doi.org/10.46850/elni.2008.006

Is environmental regulation more likely to result in additional “transaction costs” than other policy areas? Are the costs of environmental legislation perceived differently? Why are businesses apparently less prepared to accept administrative costs in the field of environmental legislation, whereas they readily accept relatively high administrative costs in other areas?
This article provides a brief description of the idea and the basic principles of the Standard Cost Model, of the German SCM Measurement Process including the results from Germany and of the ongoing EU SCM Measurement Process. It also looks at the specific role of environmental legislation in the political context of Better Regulation and the possible impact that the recent political focus on SCM and administrative cost (as a part of regulatory cost) may have on new and existing environmental regulation and on the implementation of environmental policies.

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