The denaturation role of the General Analysis on Economic and Social Impact on the elaboration of Environmental Quality Standards

Abstract

The elaboration of environmental quality standards, whether primary or secondary (in the case of Chilean legislation), is done through an administrative procedure that includes a technical and economic analysis. In this context, the General Analysis on Economic and Social Impact (AGIES for its acronym in Spanish) are developed. The methodology for the generation of AGIES varies according to the type of regulation. However, although the new jurisprudential tendency restrains and forces the administration to use an economic analysis based on cost-benefit criteria, which ends up being incompatible with the specific circumstances and protection objectives of these regulations. This paper studies the importance of the AGIES in the process of generating environmental quality standards and the relevance of the jurisprudential tendency in this regard. Particularly, this paper analyzes the interpretative conflicts that arise from these new rulings and their consequences for environmental justice. Finally, this paper considers the impact of the restrictions imposed to the administration, and suggests some alternatives to the cost-benefit framework that better adapts to the nature and objectives of the instruments to regulate environmental standards.