Regulatory impact analysis

Depending on the characteristics of a given regulation and the Client’s needs, EY EAT can conduct a qualitative or quantitative assessment of the regulation’s impact on:
 

• Demand/supply - e.g. what will be the impact of a new regulation on the supply of renewable energy?
• Public finance - e.g. what is the “optimal” excise tax policy for a given product from the public finance perspective, i.e. a policy that increases tax revenues while keeping the outflow of customers to substitute products and/or illicit market at a relatively low level?
• Value added - e.g. what is the impact on production/value added in the whole economy of underinvestment in prevention of a certain disease?
• Labour market - e.g. what is the impact of an increase in the national minimum wage on the legal and unregistered employment?
• Prices - e.g. who will bear the cost of the new tax burden (customers, sellers or suppliers)?
• Other economic variables -  e.g. foreign direct investment, foreign trade, cost of public debt servicing, turnover in the financial markets, volatility of the market

In our approach to regulatory impact assessment we emphasize the transparency principle: in our analyses we present not only results of the analysis, but also our approach (method of measurement, key assumptions, etc.). We are also ready to engage in an open and in-depth discussion with stakeholders, including the regulator, about various aspects of our analyses.