Example: an adjustment (real) cost is the purchase of filters required by
environmental protection law.
The graph below shows the cost paid by entrepreneurs to obey the
regulations. This graph helps not only in defining the cost of
administrative obligations but also in analysing the overall cost of a
proposed regulation.
The method for measuring the administrative cost should be adjusted at
the earliest phase of legislative work. Thus, when making a RIA, we
should consider the following issues:
• Will the option put new or additional administrative burden on
enterprises?
• Will the administrative cost put an excessive burden on small
and medium-sized companies?
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