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Estimating intergenerational utility distribution preferences

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  • Scarborough, Helen
  • Bennett, Jeffrey W.

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 Benefit Cost Analysis provides a means of incorporating this distributional change through the application of distributional or welfare weights. This paper reports the results of research designed to estimate distributional weights suitable for inclusion in a Benefit Cost Analysis framework. The findings of a choice modelling experiment estimating community preferences with respect to intergenerational utility distribution are presented to illustrate this innovative application of a stated preference technique.

Suggested Citation

  • Scarborough, Helen & Bennett, Jeffrey W., 2006. "Estimating intergenerational utility distribution preferences," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139899, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare06:139899
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    References listed on IDEAS

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    1. Medin, Hege & Nyborg, Karine & Bateman, Ian, 2001. "The assumption of equal marginal utility of income: how much does it matter?," Ecological Economics, Elsevier, vol. 36(3), pages 397-411, March.
    2. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    3. Giles Atkinson & Fernando Machado & Susana Mourato, 2000. "Balancing Competing Principles of Environmental Equity," Environment and Planning A, , vol. 32(10), pages 1791-1806, October.
    4. Scarborough, Helen & Bennett, Jeff & Carr, Rodney, 2004. "Using choice modelling to investigate equity preferences," Economics Series eco_2004_03, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
    5. A. Markandya, 1998. "Poverty, Income Distribution and Policy Making," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 459-472, April.
    6. Nyborg, Karine, 2000. "Homo Economicus and Homo Politicus: interpretation and aggregation of environmental values," Journal of Economic Behavior & Organization, Elsevier, vol. 42(3), pages 305-322, July.
    7. Johansson,Per-Olov, 1993. "Cost-Benefit Analysis of Environmental Change," Cambridge Books, Cambridge University Press, number 9780521447928.
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