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The regulatory impact analysis conducted by the EY Economic Analysis Team assesses the impact of an existing regulation (so called ex post analysis) or a planned regulation (so called ex ante analysis) on the national and local economy or a specific economic sector.
EY EAT can estimate an economic impact of regulations in various areas, such as: tax policy, entrepreneurship and competition, labour market, social security system, environment and climate change, sectorial policies, etc.
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.
Delivers the assessment on how the conditions of the Client’s business activity will change after the new legislative changes come into effect
Indicates economic and social threats to the economy associated with the considered regulation
Contributes to communication with stakeholders (incl. regulators and media) on the economic impact of regulatory changes
Supports the development of regulatory solutions that limit negative effects for the company, sector or economy, while increasing benefits for the society or general government (the so called win-win solutions
EY EAT provides comprehensive solutions in the area of regulatory impact assessment, providing economic expertise as well as analytical, econometric and macroeconomic modelling skills. Our regulatory impact assessment may include, among others, the following elements:
Identification
Basing on own experience and deep understanding of the theory of economics, EY EAT identifies main channels of the economic impact of governmental policy tools.
Estimation
Having understood the nature of a regulatory change, EY EAT assesses quantitatively the impact of that change through the previously identified channels. Using advanced econometric techniques and/or general equilibrium modelling, we provide counterfactual simulations to analyse the behaviour of economic agents under different policies (including the so-called “business as usual” scenario).
Development
EY EAT can challenge the existing or proposed regulations and compare them with alternative solutions. In result, the regulatory impact analysis may contribute to development of win-win solutions (for the company, sector, economy, society and government).
Communication
EY EAT may initiate a dialogue between the Client and regulators, during which the results of the analysis and our approach are communicated. Such cooperation supports all stakeholders in better understanding of the consequences of regulatory changes.
Our Economic Impact Assessment by Economic Analysis Team can show your business how it contributes through direct, indirect and induced effects to for example: gross value added, number of persons employed, households’ disposable income.
EY Economic Analysis Team (EY EAT) estimates the size of the shadow economy in various sectors and economies, assesses its consequences, and develops recommendations for fighting the shadow economy.
Our Consumer Demand Analysis by Economic Analysis can help your business answers questions such as: What are the common demand patterns across customers, how considered changes in taxation may impact the Client’s sales
Our other economic analyses by Economic Analysis Team can help your business with services like spatial analysis, commercial due diligence, economic costs of diseases.
