On the Value of Life in Rich and Poor Countries and Distributional Weights Beyond Utilitarianism
AbstractThis paper discusses the use ofdistributional weights in CBA based on a generalBergson-Samuelson SWF. In particular it illustratessome consequences of applying a SWF characterized byconstant inequality aversion (which includes classicalutilitarianism as a special case), together with aconstant relative risk aversion utility function, whencalculating the damage costs of global warming. Itextends and clarifies earlier unintuitive results, andemphasizes that utility must be seen as fully cardinalin terms of levels in this context. In the specialcase of utilitarianism, on the other hand, it issufficient to be able to make interpersonalcomparisons of utility changes. Copyright Kluwer Academic Publishers 2000
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 17 (2000)
Issue (Month): 3 (November)
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Web page: http://www.springerlink.com/link.asp?id=100263
cost-benefit analysis; distributional weights; global warming; utility transformations; welfare theory;
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