Marginal Cost of Enforcement (MCE)

The Marginal Cost of Enforcement (MCE) is a measure of the dollar amount that an organization or government is required to spend in order to enforce a specified action or policy. This measure is often used to evaluate the efficiency and effectiveness of existing or proposed regulatory policies or initiatives. The cost of enforcement must be contrasted with the cost of non-enforcement, which is typically much higher due to costs associated with inaction, such as the risks and costs of non-compliance or non-adoption of the policy. By understanding the cost of enforcement, organizations and governments can better anticipate the financial costs associated with a policy before making a decision.