Cost-Benefit Analysis
Building upon our philosophy of scientific regulations making, Narayan Chamber of Policy (NCP) advocates undertaking Cost-Benefit Analysis (CBA) before enacting any new regulation, and also for optimizing exiting regulations. CBA ensures that the costs of regulatory compliance do not outweigh its intended benefits. There are various types of CBA tools available, for different subjects and stakeholders. These include, but are not limited to the following.
Regulatory Impact Assessment (RIA)
RIAs help in understanding the efficacy of regulations, with respect to likelihood of achievement of its objectives and favourable outcomes with least cost of compliance. It helps in assessing its unintended adverse impact on different stakeholders versus its envisaged benefits, by exploring various alternative means of achieving the desired and valid objectives/outcomes. Its methodology entails a detailed and analytical approach.
Consumer Impact Assessment (ConIA)
ConIA provides valuable insights on the plausible effect of a regulation on consumer welfare, on various price and non-price parameters: information asymmetry, price, demand, quality, choice etc. It also allows to ascertain any inadvertent disproportionate impact on vulnerable consumer groups.
Competition Impact Assessment (CompIA)
CompIA has proved to useful in eliminating regulatory barriers to competition. It comprises of a comprehensive methodology for identifying unnecessary regulatory restraints on market activities, and helps in developing alternative less restrictive means to achieve government’s regulatory objectives.