Online citations, reference lists, and bibliographies.
Please confirm you are human
(Sign Up for free to never see this)
← Back to Search

Intergenerational Equity, Discounting, And The Role Of Cost-benefit Analysis In Evaluating Global Climate Policy

R. Lind
Published 1995 · Economics

Save to my Library
Download PDF
Analyze on Scholarcy
When public policies with impacts far into the future are being debated, the question inevitably is raised whether cost-benefit analysis which discounts future costs and benefits is not biased against future generations and whether, if such discounting is appropriate at all, a lower rate should be used to avoid such bias. The debate on global climate change is no exception. This paper sketches and analyses the welfare foundations of cost-benefit analysis and from this perspective analyses the role of cost-benefit analysis in the climate policy debate, particularly with reference to intergenerational effects. The paper concludes that the cost-benefit criterion cannot provide a definitive basis for deciding whether we should commit to a longer-term programme to moderate climate change; the issues of intergenerational equity are not that global climate change will significantly lower the GNP of future generations, but relate to the possibility of science fiction-like changes in the planet that will produce catastrophic effects in the future; and the typical way in which the cost-benefit problem is posed obscures the basic choices that we should be evaluating.
This paper references

This paper is referenced by
Belfer Center for Science & International Affairs Global Environmental Assessment Project Environment and Natural Resources Program September 1998 Targets and strategies : The role of economic assessments in European climate policy
P. Bader (1998)
Education as Social Common Capital
H. Uzawa (2005)
Democracy in the ageing society: Quest for political equilibrium between generations
Yongseok Seo (2017)
Economic Evaluation of SPS Regulations: Where Can Progress be Made?
E. Romano (2007)
Deliberating Beyond Evidence: Lessons from Integrated Assessment Modelling
E. Vecchione (2012)
Limitaciones, omisiones y juicios de valor del análisis económico convencional de las políticas de cambio climático
E. Rosa (2004)
Valuing the Far-off Future: Discounting and its Alternatives
C. Hepburn (2007)
Cover Delivery Report
Xue-Qin Zhu (2010)
Time Goes By: Recent Developments on the Theory and Practice of the Discount Rate
J. Campos (2015)
Economic Analysis of Social Common Capital: Main Results Recapitulated
H. Uzawa (2005)
On Equity and Developing Country Participation
A. Sari (1999)
Economic Analysis of Social Common Capital: Sustainability and Social Common Capital
H. Uzawa (2005)
Discounting and environmental quality: When should dual rates be used?
H. Weikard (2005)
Environmental Law and Public Policy
R. Stavins (2004)
Economics of Energy and Climate Change: Origins, Developments and Growth
R. Fouquet (2012)
Sustainability and the intergenerational distribution of natural resource entitlements
R. Gerlagh (1998)
Against High Interest Rates
R. Howarth (2004)
The Economics of Adaptation to Climate Change
J. Ilukor (2012)
Economic Analysis of Social Common Capital: Global Warming and Sustainable Development
H. Uzawa (2005)
Future Generations : economic , legal and institutional aspects
White Rose (2008)
Fisheries, Forestry, and Agriculture in the Theory of the Commons
H. Uzawa (2005)
The first five years of the EU Impact Assessment system: a risk economics perspective on gaps between rationale and practice
J. Torriti (2012)
Integrating Equity and Efficiency Considerations in the Evaluation of public decision
T. Ruiz (2004)
Economists and Ecologists: Different Frames of Reference for Global Climate Change
Anthony G. Patt (1997)
Climate Change and the Threat of Disaster: The Moral Case for Taking Out Insurance at Our Grandchildren's Expense
Matthew Rendall (2011)
Future generations: Economic, legal and institutional aspects
K. Hubacek (2008)
Intergenerational Discounting: A new Approach
S. Bayer (1998)
Prioritization Framework for Robust Climate Change Adaptation Investments: Supporting Transport Infrastructure Decision-Making under Uncertainty
Xavier Espinet (2015)
The Good, the Bad, and the Robust: Climate Change Adaptation Choices for the Port of Rotterdam, Port of San Diego, and Naval Base Kitsap - Bremerton
R. Smith (2015)
Environmental Law and Policy
Robert Glicksman (2004)
Economic Analysis of Social Common Capital: Energy and Recycling of Residual Wastes
H. Uzawa (2005)
The Sustainability & Economics of Reservoir Sedimentation
M. George (2014)
See more
Semantic Scholar Logo Some data provided by SemanticScholar