Congressional concern over the expansion of environmental regulation has motivated legislative proposals to formally compare the benefits and costs of new regulations. The Clinton administration and past administrations all have issued guidelines for evaluating the benefits and costs of both new regulations and federal environmental expenditures. Federal and state court judgements and administrative processes levy financial penalties on those liable for damages to the environment. In public debate, economic arguments often are made to support or to oppose particular environmental decisions. Recognizing the widespread interest in economic measurement, a significant research program within the economics profession has become the development of tools to make money measurements of the value of the environment. However, using money estimates of environmental values as a guide for decisions remains controversial among decision-makers and economists. In addition, other economic information (for example, cost estimates) may be a more significant influence on the decisions made. If the money measurements advocated by many economists are not employed, what economic information is most valued in decision making? Why is that particular economic information employed? Can economics research improve the quality of the economic information in decision making? Identifying the economic information decision participants find both useful and credible is challenging given the complex nature of public decision-making processes.To reflect this complexity and identify common relationships, this study utilizes a pattern model approach to understanding environmental policy decisions . Case studies, published materials, and agency guidelines will be synthesized to form an initial description of causal relationships between analytical results and final decision outcomes. The preliminary pattern model will then be refined and expanded through interviews with analysts, lawyers, and public officials involved in the relevant decision process. After accounting for the role of other explanatory factors, the pattern model will be used to identify how specific economic information affects final decision outcomes. Verification of results is accomplished by applying the model to a representative sample of cases and examining how closely the model represents the decision process and outcomes. The identification of what economic information is most useful and credible to decision participants in evaluating environmental changes will lead to more effective incorporation of environmental values into public decisions.
