Discounting and life cycle assessment: a distorting measure in assessments, a reasonable instrument for decisions

Abstract Although the weighting of environmental impacts against each other is well established in life cycle assessment practice, occurring at different points time still controversial. This temporal also known as discounting, which due to its potential offend principles intergenerational equity, often rejected or regarded unethical. In our literature review, we found multiple disputes regarding comprehension discounting. We structured those controversial issues and compared them original discounted utility model on discounting based. explain theory an intertemporal decision instrument based future utility. conclude that equity controversies can be solved if applied individual instrument, rather than information could underestimate damages handed generations. Each choice related discounting—including whether not discount, discount a rate zero—should well-founded. illustrate decision-related problems multidimensional issue, with least three dimensions including type impact spatial distributions. Through framed these condensed into explicit result, from draw analogies both financial instruments. suggest avoiding instruments, such single-product assessments, footprints, labels. However, alternatives have compared, should support decisions generate meaningful results.