We consider an economy à la Lucas (1978, Econometrica 46, 1429–1446) with a risk-averse representative agent. The exogenous growth rate of the economy follows a random walk. We characterize the set of utility functions for which it is efficient to discount more distant cash flows at a lower rate. The benchmark result is that, when the growth rate is almost surely nonnegative, the yield curve is...

This paper introduces the concepts of amount and speed of a discounting procedure. Exponential discounting sequesters both concepts into a single parameter that needs to be disaggregated in order to characterize nonconstant rate procedures. The inverse of the present value of a unit stream of benefits provides a natural measure of the amount a procedure discounts the future. We propose geometri...

Under the dual pressures of energy crisis and environmental pollution, China’s new power industry has become a focal point for management requires greater investment. In this context, as significant input investment projects, discount rate well-calibrated evaluation because projects are highly capital intensive. The main objective paper is to evaluate industry. First, we use Moving Average corr...

To explore the differences in carbon emissions over the whole life-cycle of different building structures, the published calculated carbon emissions from residential buildings in China and abroad were normalized. Embodied carbon emission flows, operations stage carbon emission flows, demolition and reclamation stage carbon emission flows and total life-cycle carbon emission flows from concrete,...

The Ramsey rule for the consumption rate of discount assumes a transfer of money of a (representative) agent at one point in time to the same agent at another point in time. Climate policy (implicitly) transfers money not just over time but also between agents. I propose three alternative modifications of the Ramsey rule to account for this. Taking the Ramsey rule as given, I derive an intuitiv...