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Individual time preferences and social discounting in-environmental projects

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Author Info

  • Percoco, M.

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Nijkamp, P.

Abstract

The choice of an appropriate social rate of discount is critical in the decision-making process on public investments. In this paper we review the literature on social discounting, and address in particular a recently growing field of related research, that is, individual time preferences. We argue that an explicit consideration and analysis of the behaviour of individuals regarding the concept and the use of an appropriate social discount rate are essential for balanced decision making in the public sector, especially, though not exclusively, in the field of resource or environmental policy.

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File URL: ftp://zappa.ubvu.vu.nl/20090028.pdf
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Bibliographic Info

Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0028.

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Date of creation: 2009
Date of revision:
Handle: RePEc:dgr:vuarem:2009-28

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Web page: http://www.feweb.vu.nl

Related research

Keywords: Social Discounting; Individual Time Preference; Meta-Analysis; Public Interventions; Project Appraisal; Public Policy Evaluation.;

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Cited by:
  1. Gromicho, J.A.S. & Hoorn, J.J. van & Timmer, G.T. & Saldanha-da-Gama, F., 2009. "Exponentially better than brute force: solving the jobshop scheduling problem optimally by dynamic programming," Serie Research Memoranda 0056, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.

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