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Estimating intergenerational distribution preferences

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  • Scarborough, Helen
  • Bennett, Jeff

Abstract

Resource management decisions influence not only the output of the economy but also the distribution of utility between groups within the community. The theory of cost benefit analysis provides a means of incorporating distributional changes into the decision making calculus through the application of distributional or welfare weights. However, this practice has not been widely adopted in part due to difficulties in the estimation of distributional weights. This paper addresses this problem by using the stated preference method of choice modelling to estimate distributional weights suitable for inclusion in a cost benefit analysis framework. The findings of a choice modelling experiment designed to estimate community preferences with respect to intergenerational utility distribution illustrate the potential of this method in addressing distributional issues.

Suggested Citation

  • Scarborough, Helen & Bennett, Jeff, 2008. "Estimating intergenerational distribution preferences," Ecological Economics, Elsevier, vol. 66(4), pages 575-583, July.
  • Handle: RePEc:eee:ecolec:v:66:y:2008:i:4:p:575-583
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    References listed on IDEAS

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    Cited by:

    1. Scarborough, Helen, 2011. "Intergenerational equity and the social discount rate," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(2), June.
    2. Scarborough, Helen & Burton, Michael & Bennett, Jeff, 2009. "Decision-making in a social welfare context," Working Papers eco_2009_02, Deakin University, Department of Economics.

    More about this item

    Keywords

    Distributional weights Cost benefit analysis Intergenerational distribution Choice modelling C35 D61 Q56;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • 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

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