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Sökning: LAR1:gu > Tidskriftsartikel > Sterner Thomas 1952

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  • Arrow, K., et al. (författare)
  • Determining Benefits and Costs for Future Generations
  • 2013
  • Ingår i: Science. - 0036-8075. ; 341:6144, s. 349-350
  • Tidskriftsartikel (refereegranskat)abstract
    • In economic project analysis, the rate at which future benefits and costs are discounted relative to current values often determines whether a project passes the benefit-cost test. This is especially true of projects with long time horizons, such as those to reduce greenhouse gas (GHG) emissions. Whether the benefits of climate policies, which can last for centuries, outweigh the costs, many of which are borne today, is especially sensitive to the rate at which future benefits are discounted. This is also true of other policies, e.g., affecting nuclear waste disposal or the construction of long-lived infrastructure
  • Arrow, K. J., et al. (författare)
  • Should Governments Use a Declining Discount Rate in Project Analysis?
  • 2014
  • Ingår i: Review of Environmental Economics and Policy. - 1750-6816. ; 8:2, s. 145-163
  • Tidskriftsartikel (refereegranskat)abstract
    • Should governments use a discount rate that declines over time when evaluating the future benefits and costs of public projects? The argument for using a declining discount rate (DDR) is simple: if the discount rates that will be applied in the future are uncertain but positively correlated, and if the analyst can assign probabilities to these discount rates, then the result will be a declining schedule of certainty-equivalent discount rates. There is a growing empirical literature that estimates models of long-term interest rates and uses them to forecast the DDR schedule. However, this literature has been criticized because it lacks a connection to the theory of project evaluation. In benefit-cost analysis, the net benefits of a project in year t (in consumption units) are discounted to the present at the rate at which society would trade consumption in year t for consumption in the present. With simplifying assumptions, this leads to the Ramsey discounting formula, which results in a declining certainty-equivalent discount rate if the rate of growth in consumption is uncertain and if shocks to consumption are correlated over time. We conclude that the arguments in favor of a DDR are compelling and thus merit serious consideration by regulatory agencies in the United States.
  • Arrow, K, et al. (författare)
  • Managing Ecosystem Resources
  • 2000
  • Ingår i: Environmental Science & Technology. ; 34, s. 1401-1406
  • Tidskriftsartikel (refereegranskat)
  • Carlsson, Fredrik, 1968-, et al. (författare)
  • A fair share: Burden-sharing preferences in the United States and China
  • 2013
  • Ingår i: Resource and Energy Economics. - 0928-7655. ; 35:1, s. 1-17
  • Tidskriftsartikel (refereegranskat)abstract
    • Using a sequential discrete choice experiment, we investigate preferences for distributing the economic burden of reducing CO2 emissions in the two largest CO2-emitting countries: the United States and China. We asked respondents about their preferences for four burden-sharing rules to reduce CO2 emissions according to their country's relative (1) historical emissions, (2) income level, (3) emissions per capita, and (4) current emissions. We found that respondents overall favored the rule that was least costly for their country. In addition, the willingness to pay was much higher in China, suggesting that how mitigation costs are shared across countries is more important for Chinese than for Americans. To some extent the willingness to pay varies with socioeconomic characteristics and attitudes. For example, university-educated respondents in the United States are willing to pay more for the rule that is the least costly for their own country, compared with those with a lower education level. At the same time, the ranking of the two most preferred rules are generally robust across all socioeconomic groups within each country.
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