Final answer:
This statement is false. Benefit-cost analysis is not new; it has long been used to evaluate environmental policies by comparing the costs and benefits to make economically rational decisions. The technique considers the redistribution of impacts across society, ensuring that benefits outweigh the costs of a given policy.
Step-by-step explanation:
Benefit-cost analysis is a crucial technique in evaluating environmental policies and has been utilized for many years, rather than being a new technique. It involves contrasting the costs and benefits associated with a particular policy or project. By doing so, policymakers can make more informed, economically sound decisions that aim at maximizing net benefits to society.
At its core, benefit-cost analysis requires the identification and quantification of all costs, such as monetary expenses, effort, and other sacrifices. These are then compared to the benefits, which might include savings, time efficiencies, experience gains, and environmental improvements. This comparison helps determine whether the benefits of a policy or project exceed the costs, justifying the initiative's implementation.
However, it is important to note that benefit-cost analysis is subject to political influences, as advocates may have incentives to distort the analysis by understating costs or overstating benefits. Therefore, accurate and transparent analyses are essential for trustworthiness and utility in policy formation.
Environmental policy decision-making involves assessing the trade-offs and aiming for points such as Qb where the benefits of reducing environmental pollutants outweigh the costs. When these costs start to exceed the benefits, as potentially at Qc, policymakers will generally avoid implementing stricter regulations.