Has Economic Research Answered the Needs of Environmental Policy?

Efficient environmental regulation requires empirical estimates of the benefits and costs of environmental standards and policies. In the last 25 years, economists have made considerable progress in developing methods for measuring environmental benefits and in providing empirical estimates of costs and benefits. This paper reviews this progress. It examines by category of benefit the advancements made in providing estimates that can be used in benefit-cost analyses and identifies areas where additional research is required.