Intergenerational Equity, Social Discount Rates and Global Warming

摘要: Abstract This article is about the logic underlying social discount rates. We argue thatthese rates are not ethical raw material, but derived from more fundamentalnotion of justice among generations. A number approaches to concept ofintergenerational discussed, and it argued that most compellingformulation available us one long been in use economists, namely, theRamsey-Koopmans theory. theory advocates investment projects having long-run effects should be subjected same conceptual treatment as those affectonly near future. show depend on numeraire, andthat methods estimating them institutional setting within which socialcost benefit analysis assumed undertaken. also incorrect toadvocate project-specific a way conserving environmentalresources.Social have universally taken positive, grounds thatthe rate return positive. But if consumption productionactivities give rise environmental pollution by-product, returnon could zero even when private positive; at very least, thesocial would lower than rate. The current practice globalenergy modellers relying exclusively (risk-free) market forestimating optimal carbon taxes conceptually faulty. In context formal modelof we how, along an programme, socialrates can zero. demonstrate certain settings,social negative.