Governments across the OECD and beyond are increasingly concerned with controlling and reducing regulatory costs in order to create a more favourable business environment, thereby improve the conditions for inclusive growth. They must work to systematically adopt better regulatory choices, ensuring that the most cost-effective and efficient options are chosen in all areas of regulation. A key component of regulatory costs are the costs associated with regulatory compliance. This guidance document provides a practical, technical and user-friendly guidance on measuring and reducing compliance costs of regulation in OECD countries.
Table of contents:
Introduction 7 Chapter 1. A taxonomy of regulatory costs 11 -Overview 11 -Conclusion 15 Chapter 2. Categories of substantive compliance cost 17 Chapter 3. Process for completing a compliance cost assessment 21 -Preliminary assessment of regulatory scope 22 -Identify data sources and strategies to be used 26 -Select appropriate methodological approaches to cost estimation 29 -Process analysis 30 -Develop an appropriate base case 40 -Calculate estimates of each type of compliance cost 42 -Conduct sensitivity analysis if required 46 -Review estimates, identify cost drivers, consider need/potential to revise proposal 47 -Present the results 48 -Publish the results of compliance cost assessment 50 -Conduct ex post validation 51 Annex A. Additional guidance on selected topics 55 -Cost attribution 56 -Top-down vs. bottom-up approaches 57 -Estimating compliance costs borne by citizens 60 -Ex ante vs. ex post compliance cost assessments 61 -Checklists of potential regulatory compliance activities 62 -Summary of methodological approaches for valuing compliance costs 64 -Conducting sensitivity analysis 68 Bibliography 71