EPA’s Analytical Jujitsu

This article originally appeared in Regulation. Click here to read the full article.

By Sam Batkins and Ike Brannon

In these pages four years ago (“Obfuscation at the EPA,” Summer 2011) we announced our discovery of the U.S. Environmental Protection Agency’s new methodology for ascribing job gains to costly new regulations: a sleight-of-hand whereby it attributes the workers hired to ensure compliance with new regulations as a benefit rather than an economic cost. It is execrable logic, compounded by the agency’s failure to acknowledge the much larger long-term job losses from rendering entire industries less competitive from higher costs resulting from the regulation.