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Your search keyword '"social discount factor"' showing total 2 results
Start Over Descriptor "social discount factor" Topic consumption (economics)
2 results on '"social discount factor"'

1. Sustainability, limited substitutability, and non-constant social discount rates

Author

Traeger, Christian P.

Subjects
*SUSTAINABILITY, *ENVIRONMENTAL management, *CONSUMPTION (Economics), *SOCIAL services, *EXPONENTIAL functions, *PROJECT evaluation, *DISCOUNT prices
Abstract

Abstract: The paper shows how limited substitutability in consumption between different classes of goods affects the magnitude and time development of social discount rates. It decomposes the discount rates into an absolute growth and a relative growth or substitutability effect. The paper relates between-good and intertemporal substitutability to the notions of weak and strong sustainability. It analyzes under which circumstances low as opposed to high between-good substitutability increases the weights given to long-run environmental services. [Copyright &y& Elsevier]

Published
2011
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2. Sustainability, Limited Substitutability and Non-Constant Social Discount Rates

Author

Christian P. Traeger

Subjects
Economics and Econometrics, social discount factor, social discount rate, propagator of marginal utility, weak sustainability, Management, Monitoring, Policy and Law, Social and Behavioral Sciences, strong sustainability, Microeconomics, hyperbolic, project evaluation, Economics, Social discount rate, Consumption (economics), time preference, Life Sciences, non-constant discounting, environmental discount rate, limited substitutability, Weak and strong sustainability, Sustainability, benefit-cost analysis, sustainable development, welfare economics, numeraire dependence, environmental discount rate, hyperbolic, limited substitutability, non-constant discounting, numeraire dependence, project evaluation, propagator of marginal utility, social discount factor, social discount rate, strong sustainability, time preference, weak sustainability, Social and Behavioral Sciences, Life Sciences, Time preference, Constant (mathematics)
Abstract

The paper explores the consequences of limited substitutability in welfare between environmental and produced goods for long-term evaluation. I show how the magnitude and time development of optimal social discount rates depend on the substitutability between the different classes of goods. The notions of weak and strong sustainability are translated into the degree of substitutability. I show that a strong notion of sustainability results in lower weights given to long-run service and consumption streams compared to a weak notion of sustainability.

Published
2008

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