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Models of preferences between outcomes over continuous time are important for individual, corporate, and social decision making, e.g., medical treatment, infrastructure development, and environmental regulation. This paper presents a foundation for such models. It shows that conditions on...
Persistent link: https://www.econbiz.de/10005749539
discounting environment consumption with an environmental discount rate instead of a consumption discount rate that is usually … used in cost-benefit analysis. The present study clarifies that whether or not this dual-rate discounting approach succeeds …
Persistent link: https://www.econbiz.de/10010298591
of these findings for the debate upon discounting and sustainability under uncertainty. …
Persistent link: https://www.econbiz.de/10011608555
Climate change not only impacts production and market consumption, but also the relative scarcity of non-market goods, such as environmental amenities. We study fundamental drivers of the resulting relative price changes, their potential magnitude, and their implications for climate policy in...
Persistent link: https://www.econbiz.de/10012179851
scarcity of non-market goods on climate policy evaluation is therefore more pervasive than previously suggested. We calibrate … guidance for the evaluation of climate policy. …
Persistent link: https://www.econbiz.de/10011787978
comprehensive evaluation of uncertainty and uncertainty attitude changes this picture fundamentally. The analysis relies on the … assumption of (intertemporal) risk neutrality reduces the growth effect in social discounting and significantly amplifies the … social discount rate and points out the importance of even thin tailed uncertainty for climate change evaluation. It …
Persistent link: https://www.econbiz.de/10010280817
well-characterized families of procedures for use in social project evaluation. Exponential discounting isolates the … aggregating individual discounting procedures into a social one for project evaluation averages the individual functions. We point …This paper introduces the concept of categorizing the amount and speed of a discounting procedure in order to generate …
Persistent link: https://www.econbiz.de/10008778715
This paper analyzes optimal social discount rates where people derive utility from relative consumption. We identify and compare three separate discount rates: the social rate (taking positional externalities into account), the private rate, and the conventional Ramsey rate. Two main findings...
Persistent link: https://www.econbiz.de/10013113041
The social rate of discount is a crucial driver of the social cost of carbon (SCC), i.e. the expected present discounted value of marginal damages resulting from emitting one ton of carbon today. Policy makers should set carbon prices to the SCC using a carbon tax or a competitive permits...
Persistent link: https://www.econbiz.de/10012827663
The social rate of discount is a crucial driver of the social cost of carbon (SCC), i.e. the expected present discounted value of marginal damages resulting from emitting one ton of carbon today. Policy makers should set carbon prices to the SCC using a carbon tax or a competitive permits...
Persistent link: https://www.econbiz.de/10012249287