IDEAS home Printed from https://ideas.repec.org/a/eis/articl/108evans.html
   My bibliography  Save this article

Social Project Appraisal and Discounting for the Very Long Term

Author

Listed:
  • D Evans

Abstract

This paper considers the issue of discounting in relation to the appraisal of very long-term social projects. This is an increasingly important matter given the growing concerns over the environmental and safety impacts of many projects on future generations. Standard discounting practice trivialises the welfare impacts of projected costs and benefits on future populations, so a credible alternative procedure is required to avoid this 'write-off'. The British Treasury bases its published long-term discount factors on uncertainty concerning the value of the discount rate, although the factor values it has published seem inappropriate. The nature of this problem is examined and an alternative set of discount factors is presented for consideration. Additionally, a further set of factors is proposed for possible policy application in developed countries in cases where social project welfare impacts are not related to income. This new set is based only on uncertainty in the utility discount rate.

Suggested Citation

  • D Evans, 2008. "Social Project Appraisal and Discounting for the Very Long Term," Economic Issues Journal Articles, Economic Issues, vol. 13(1), pages 61-70, March.
  • Handle: RePEc:eis:articl:108evans
    as

    Download full text from publisher

    File URL: http://www.economicissues.org.uk/Files/108Evans.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Michael Spackman, 2004. "Time discounting and of the cost of capital in government," Fiscal Studies, Institute for Fiscal Studies, vol. 25(4), pages 467-518, December.
    2. Martin L. Weitzman, 2001. "Gamma Discounting," American Economic Review, American Economic Association, vol. 91(1), pages 260-271, March.
    3. Graciela Chichilnisky, 1997. "What Is Sustainable Development?," Land Economics, University of Wisconsin Press, vol. 73(4), pages 467-491.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pollitt, M., 2010. "Green Values in Communities: How and why to engage individuals with decarbonisation targets," Working Papers wp398, Centre for Business Research, University of Cambridge.
    2. Geissmann, Thomas, 2017. "A probabilistic approach to the computation of the levelized cost of electricity," Energy, Elsevier, vol. 124(C), pages 372-381.

    More about this item

    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:eis:articl:108evans. 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: (Dan Wheatley). General contact details of provider: http://edirc.repec.org/data/bsntuuk.html .

    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.