Sommes-nous trop égoïstes ou trop généreux envers les générations futures ?
In our Western economies, the abnegation of past generations has contributed to improving current generations’ welfare. What about now? Under the pressure of ecological catastrophists, is the current generation too burdened in favor of future generations or on the contrary, is it not burdened enough in view of the risks to be borne by our descendants? In this paper, I review the importance, for public decision making, of the choice of discount rate used to assess the present value of the flow of future damages (or benefits) linked to the current decisions. I then develop a classical model identifying the efficient social discount rate and analyze its determinants (pure rate of time preference, wealth effect and precautionary effect). Relying on empirical evidence and the historical trend of the economic growth rate, I discuss what is a reasonable value for the discount rate according to the term of the assessed project.
Volume (Year): LI (2012)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.cairn.info/revue-reflets-et-perspectives-de-la-vie-economique.htm|
When requesting a correction, please mention this item's handle: RePEc:cai:rpvedb:rpve_514_0067. 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)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.