Introduction:When it comes to environmental policy, it is important for governments to consider concepts such as risk, economic efficiency and cost-benefit analysis. profit. A common concern expressed by proponents of regulatory reform in recent decades is that the costs associated with certain regulations exceed the benefits those regulations are intended to provide (Tengs and Graham, 1996). Another, somewhat related view is that smarter regulatory policies could achieve the same social goals (e.g., cleaner environment, safer workplaces) at lower cost, or could achieve more ambitious goals at the same cost (Tengs and Graham, 1996). For the above reasons, federal agencies have invested in the use of tools such as cost-benefit analysis and risk assessment to minimize possible risks of excessive costs and negative environmental impact. The purpose of this article is to evaluate and determine whether tools such as risk assessment and cost-benefit analysis are invaluable tools and important ingredients in environmental policy making. Cost-benefit analysis: According to renowned environmental economist Dan Phaneuf (2005), “cost-benefit analysis” provides an organizational framework for identifying, quantifying, and comparing the costs and benefits (measured in dollars) of 'a proposed political action'. Certainly, “the final decision is informed (but not necessarily determined) by a comparison of total costs and benefits (Phaneuf, 2005)”. A CRS report to Congress recalls that federal agencies have widely used cost-benefit analysis since the 1930s (Moore, 1995). Indeed, the government initially used this technique to “assess the economic feasibility of water resources projects and then apply it to other public projects.” infrastructure ... middle of paper ...... require agencies to use risk assessment and cost-benefit analysis to provide the public and regulated community with essential information on the cost and effectiveness of environmental regulations. (Conference on Environmental Policy Making and Policy Analysis). References: Coppock, R., 1984. Social constraints on technological progress. Gower, Hampshire. Lecture Notes on Environmental Policy Making and Policy Analysis (2013). Fischer F (1991). Risk assessment and environmental crisis: towards an integration of science and participation. Organization & Environment. 5, 113-132. Moore, J (1995). Cost-benefit analysis: issues related to its use in regulation. CSR report for the Congress, . retrieved December 4, 2013 from https://blackboard.jhu.edu/bbcswebdav/pid-1355949-dt-content-rid 6263192_2/courses/AS.420.614.81.FA13/Unit_5_docs/cost_benefit_issues_in_regs.pdf