Legal Definitions - efficiency

Efficiency refers to achieving the best possible outcome with the least amount of resources or effort. It is a result that yields the largest possible net benefit. To determine the most efficient decision or legal rule, a cost-benefit analysis should be conducted for every available option. The strength of any argument about efficiency largely depends on the number of variables considered and the quality of how costs and benefits are calculated.

• A company that produces goods wants to increase its efficiency by reducing the amount of waste it generates. By implementing a recycling program, the company can reuse materials and reduce the amount of waste it sends to landfills. This not only benefits the environment but also saves the company money on disposal costs.
• A city government wants to improve the efficiency of its public transportation system. By investing in new buses that run on clean energy and implementing a more streamlined route system, the city can reduce travel time for commuters and decrease traffic congestion on the roads.

These examples illustrate how efficiency can be achieved by making changes that benefit both the environment and the bottom line. By reducing waste and improving transportation, resources are used more effectively, resulting in a larger net benefit for all involved.