A New Approach to Risk Assessment Integrating Scientific Evaluation and Economic Assessment of Costs and Benefits

Abstract

Traditional quantitative risk assessment based on conservative generic assumptions led to an upper-bound risk value with minimum or no consideration of costs and benefits. There is a growing consensus for a new approach to risk assessment based on a combination of scientific risk assessment and economic cost–benefit analysis. Scientific evaluation would be improved to support the economic cost–benefit analysis. The objective is to demonstrate whether the benefits justify the costs. The move in the new direction is shown by Executive Order 12866 and the Office of Management and Budget implementing document, the proposed regulatory reform legislation in Congress, the draft report of the Risk Assessment and Risk Management Commission, and the Safe Drinking Water Act Amendments of 1996 that enacted the new approach combining scientific and economic assessment of risk. This Commentary discusses these developments with particular reference to contemplated changes in scientific risk assessment to support a parallel economic risk–benefit analysis.