Report
Public costs of setting an upper limit for ingredients
We have carried out a model-based assessment for a company to determine the costs that the state would incur as a result of implementing and enforcing a planned upper limit on a particular ingredient.
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Background
A company was faced with a proposed regulation that set an upper limit for a specific ingredient. The political debate centred on the question of what costs the state would incur in implementing and enforcing such a measure.
Our Approach
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1
Analysis of the monitoring and control requirements under the proposed regulation.
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2
Data-based estimation of the required testing intensity and costs (including staff and laboratory costs).
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3
Derivation of specific cost estimates for the public sector.
Result
This resulted in specific, quantified cost estimates for the public sector. The company was thus able to demonstrate to political decision-makers what practical consequences the regulation would have for the state, and to underpin its own position with tangible figures.