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An Introduction to Spatial Discounting

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  • Charles Perrings
  • Bruce Hannon
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    Abstract

    Research on the valuation of environmental externalities shows that decision makers tend to discount not only over time but across space. Just as time discounting has implications for intergenerational equity, geographical or spatial discounting has implications for intragenerational equity. Similarly, just as positive time discount rates are warranted by positive net rates of growth of the capital stock, positive spatial discount rates may be warranted by the fact that enviironmental (or other external effects of economic activity are diffused at positive rates. This paper introduces the notion of spatial discounting and explores its welfare implications through a simple diffusion model. Copyright 2001 BlackwellPublishers

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Regional Science.

    Volume (Year): 41 (2001)
    Issue (Month): 1 ()
    Pages: 23-38

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    Handle: RePEc:bla:jregsc:v:41:y:2001:i:1:p:23-38

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146

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    Cited by:
    1. Goeschl, Timo, 2003. "Hijackers and Hostages in Non-binding Linked-Issues Referenda: Analysis and an Application," Staff Paper Series 466, University of Wisconsin, Agricultural and Applied Economics.
    2. Harmsen-van Hout, Marjolein J.W. & Dellaert, Benedict G.C. & Herings, P. Jean-Jacques, 2008. "Behavorial Effects in Individual Decisions of Network Formation," Research Memorandum 019, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    3. Timo Goeschl, 2005. "Non-binding linked-issues referenda: Analysis and an application," Public Choice, Springer, vol. 124(3), pages 249-266, September.
    4. Tjernström, E. & Tietenberg, T., 2008. "Do differences in attitudes explain differences in national climate change policies?," Ecological Economics, Elsevier, vol. 65(2), pages 315-324, April.
    5. Seth Baum & William Easterling, 2010. "Space-time discounting in climate change adaptation," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 15(6), pages 591-609, August.
    6. Jordan, Geraldine J. & Fortin, Marie-Josee, 2002. "Scale and topology in the ecological economics sustainability paradigm," Ecological Economics, Elsevier, vol. 41(2), pages 361-366, May.

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