Social discounting, inequality aversion, and the environment

Measures of inequality aversion are elicited using hypothetical decision tasks. The tasks require an assessment projects in the presence environmental inequalities across space and time. We also test effect different domains (air pollution, recreational forest soil fertility) contextual framings (gain/loss, within/between regions present–future/past–present inter-temporal trade-offs). Estimated mean is higher intra-temporal framing (an elasticity 2.9), than with either negative (2.0) or positive (1.4) growth quality. Differences exist but less pronounced. Similar results hold for pure time preference. Losses associated a lower rate preference compared to gains. indicate how domain-specific ‘dual’ discount rates rather changing relative shadow prices environment might be calibrated. Yet, seen as exercise empirical social choice, context dependent reject classical Utilitarian formulation single Ramsey Rule.