From: OECD
Trnka, D. and Y. Thuerer (2019), “One-In, X-Out: Regulatory
offsetting in selected OECD countries ”, OECD Regulatory
Policy Working Papers, No. 11, OECD Publishing, Paris.
http://dx.doi.org/10.1787/67d71764-en
ABSTRACT
Governments are increasingly trying to limit the costs of regulatory compliance. One of the
approaches that has been gaining ground in the last five years is the “one-in, x-out rule”, or
the offsetting of regulatory costs stemming from new regulations by reducing the existing
regulatory stock. This paper presents examples of regulatory offsetting approaches in
selected OECD countries. By comparing the different approaches and discussing their key
features, the paper provides guidance to countries considering introducing regulatory
offsetting. This paper finds that there are many methodological and implementation issues
that need to be resolved before a government decides to use a one-in, x-out approach as
part of its regulatory policy. Key suggestions for countries introducing regulatory offsetting
include i) ensuring a solid methodology for calculating regulatory costs; ii) linking the
responsibility for finding offsets to the “owners” of regulation; iii) setting up quality
oversight mechanisms; iv) securing strong political commitment and support and
v) implementing regulatory offsetting as a complement to other regulatory management
tools.