IDEAS home Printed from https://ideas.repec.org/a/cai/reldbu/rel_722_0157.html
   My bibliography  Save this article

Éléments sur l'actualisation et l'environnement

Author

Listed:
  • Katheline Schubert

Abstract

The choice of a discount rate is central in project evaluation, all the more since the project’s horizon is distant. The controversy about the appropriate discount rate has been given a new life about environmental projects, characterized by very remote costs and/or benefits, reduced to a trivial level by discounting. This paper is a survey of the recent literature on discounting and the environment. The .rst proposal in this literature consists in replacing the usual social welfare function, namely the discounted utilitarian one, by another social welfare criterion, based on intergenerational equity issues. The second approach is descriptive rather than prescriptive, and justifies by psychological considerations the use of a time-decreasing pure rate of time preference. The third approach justifies by future uncertainty the use of a time-decreasing consumption social discount rate. We underline that it is very difficult to determine the “good” procedure for choosing a discount rate. The arguments that lead to adopt a time-decreasing social consumption discount rate are nevertheless very convincing, and the paper argues in favour of this approach.

Suggested Citation

  • Katheline Schubert, 2006. "Éléments sur l'actualisation et l'environnement," Recherches économiques de Louvain, De Boeck Université, vol. 72(2), pages 157-175.
  • Handle: RePEc:cai:reldbu:rel_722_0157
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=REL_722_0157
    Download Restriction: free

    File URL: http://www.cairn.info/revue-recherches-economiques-de-louvain-2006-2-page-157.htm
    Download Restriction: free

    Other versions of this item:

    References listed on IDEAS

    as
    1. Heal, G., 1998. "Valuing the Future: Economic Theory and Sustainability," Papers 98-10, Columbia - Graduate School of Business.
    2. Weitzman, Martin L., 1998. "Why the Far-Distant Future Should Be Discounted at Its Lowest Possible Rate," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 201-208, November.
    3. Gollier, Christian, 2002. "Time Horizon and the Discount Rate," Journal of Economic Theory, Elsevier, vol. 107(2), pages 463-473, December.
    4. David Pearce & Ben Groom & Cameron Hepburn & Phoebe Koundouri, 2003. "Valuing the Future," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 4(2), pages 121-141, April.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:reldbu:rel_722_0157. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire). General contact details of provider: http://www.cairn.info/revue-recherches-economiques-de-louvain.htm .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.