Cost-benefit Analysis: Fundamental Theories And Legislation Practice In China

Laws and regulations are the source of power for government regulation. Qualities of laws and regulations determine the effectiveness of government regulation. Therefore, the government should have analysis and assessment on the legislative procedure from Legislative drafting to its enactment, which can justify the necessary, rationality, legitimateness and effectiveness of certain regulations'impact.Cost-benefit Analysis is one of the major methods when assessing the regulations and it also provide an effective way of advancing the qualities of legislations. Cost-benefit Analysis depicts the benefit and cost resulting from the implementation of certain regulation in monetary, and judges its legitimateness by comparing the benefit and cost. The quantitative method in this assessment clarifies the criteria of fair, justice, and public interest, enhances the transparency of the legislative procedure, improves the legislative technology, makes up the limitations of regulations, and keeps the time-effectiveness of government regulation.This thesis begins from the introduction of Cost-benefit analysis theorys and argues the problems during the legislative procedure of China. By some case studies, the author details the ideal process and method of the Cost-Benefit analysis in government legislation and provides some suggestions for establishing a long-term mechanism for it. The legislative affairs office of the State Council should summarize the experience of the implementation of regulations, amends the procedure of government legislation.,and formulates a Nationwide Guidelines. Only thus can Cost-benefit analysis method be implemented throughout the whole procedure of government legislation. In addition, we should also establish institutions that especially focus on the organization, supervision and harmonization of the Cost-benefit Analysis method for eschewing the formalism of the procedure and the waste of government resources.