The Choice of Discount Rate for Climate Change Policy Evaluation
نویسندگان
چکیده
منابع مشابه
The Choice of Discount Rate for Climate Change Policy Evaluation
Nearly all discussions about the appropriate consumption discount rate for climate-change policy evaluation assume that a single discount rate concept applies. We argue that two distinct concepts and associated rates apply. We distinguish a social-welfare-equivalent discount rate (rSW) appropriate for determining whether a given policy would augment social welfare (according to a postulated soc...
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Consequences in the distant future—such as those from climate change—have little value today when discounted using conventional rates. This result contradicts our ‘‘gut feeling’’ about such problems and often leads to ad hoc application of lower rates for valuations over longer horizons—a step facilitated by confusion and disagreement over the correct rate even over short horizons. We review th...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2012
ISSN: 1556-5068
DOI: 10.2139/ssrn.2145578