Evaluating regulatory performance

Evaluation is core to evidence-based and accountable policy making. It helps to ensure that the policy aims of regulations are met, while maximising benefits and minimising costs. Regulatory impact analysis (RIA) is a systematic policy tool used to examine and measure the likely benefits, costs and effects of new or existing regulation. If undertaken ex ante, RIA assists decision makers to choose among the best alternative policy options. Conducted ex post, RIA helps to identify whether existing regulations should be revised. Cost-benefit analysis informs both the ex ante and ex post evaluation of a regulation and its alternatives. Consideration is best given early in the policy cycle to the criteria for ex post evaluation, including whether the objectives of the regulation are clear and what data will be used to measure performance, as well as the allocation of institutional responsibilities for review and evaluation.