Intergenerational equity and the social discount rate
نویسندگان
چکیده
منابع مشابه
Intergenerational Equity and the Discount Rate for Cost-benefit Analysis Revised Version
For two independent principles of intergenerational equity, the implied discount rate equals the growth rate of real percapita income, say 2%, thus falling right into the range suggested by the U.S. Office of Management and Budget. To prove this, we develop a simple tool to evaluate small policy changes affecting several generations, by reducing the dynamic problem to a static one. A necessary ...
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What discount rate should be applied to social investments? It is standard to use the market interest rate, thereby respecting private preferences. We show that application of this “revealed preference” criterion rests on faith, not logic. It is justified only if preferences over all choices, including past choices, are time invariant. The conditions for this to be true are stringent. Under mor...
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Recent debates over the economics of climate change underscore the importance of what at first blush is a narrow technical issue in welfare economics and cost-benefit analysis (CBA). Yet even before the need to study the economics of climate change, debate over both nuclear energy policy and water resource policy highlighted the fateful role that social discount rates play in policy prescriptio...
متن کاملDépartement des Sciences Économiques de l'Université catholique de Louvain Intergenerational equity and the discount rate for cost-benefit analysis
For two independent principles of intergenerational equity, the implied discount rate equals the growth rate of real per-capita income, say 2%, thus falling right into the range suggested by the U.S. Office of Management and Budget. To prove this, we develop a simple tool to evaluate small policy changes affecting several generations, by reducing the dynamic problem to a static one. A necessary...
متن کاملA Social Discount Rate for the US
The approach adopted in this paper in order to measure the US social discount rate is market-driven and relies on trade-offs in financial markets. The underlying assumptions are that public budgets displace the marginal private investment, and that US citizens borrow to finance home mortgages. The average debt capacity of the US citizen, or the representative investor, is 20%. It is argued that...
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ژورنال
عنوان ژورنال: Australian Journal of Agricultural and Resource Economics
سال: 2011
ISSN: 1364-985X
DOI: 10.1111/j.1467-8489.2011.00532.x