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The Social Discount Rate For Land‐Use Projects In India

Author

Listed:
  • R. A. Sharma
  • M. J. McGregor
  • J. F. Blyth

Abstract

The social discount rate is derived from an inter‐temporal social utility model for land‐use projects in India. The social discount rate is a function of two parameters: the elasticity of social marginal utility of consumption and the growth rate of per capita real consumption. The final results for the social discount rate and the elasticity of social marginal utility of consumption are 2 per cent and ‐1.4 respectively. These values are plausible and comparable with other estimates found in the literature.

Suggested Citation

  • R. A. Sharma & M. J. McGregor & J. F. Blyth, 1991. "The Social Discount Rate For Land‐Use Projects In India," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(1), pages 86-92, January.
    • Handle: RePEc:bla:jageco:v:42:y:1991:i:1:p:86-92
    DOI: 10.1111/j.1477-9552.1991.tb00335.x
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    References listed on IDEAS

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    1. Stephen A. Marglin, 1963. "The Opportunity Costs of Public Investment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 77(2), pages 274-289.
    2. E Kula, 1985. "An Empirical Investigation on the Social Time-Preference Rate for the United Kingdom," Environment and Planning A, , vol. 17(2), pages 199-212, February.
    3. Erhun Kula, 1984. "Derivation of Social Time Preference Rates for the United States and Canada," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(4), pages 873-882.
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    Cited by:

    1. Gunnar Köhlin & Peter J. Parks, 2001. "Spatial Variability and Disincentives to Harvest: Deforestation and Fuelwood Collection in South Asia," Land Economics, University of Wisconsin Press, vol. 77(2), pages 206-218.
    2. David Evans, 2004. "A social discount rate for France," Applied Economics Letters, Taylor & Francis Journals, vol. 11(13), pages 803-808.
    3. David Evans, 2004. "The elevated status of the elasticity of marginal utility of consumption," Applied Economics Letters, Taylor & Francis Journals, vol. 11(7), pages 443-447.
    4. D. Evans & E. Kula & H. Sezer, 2005. "Regional welfare weights for the UK: England, Scotland, Wales and Northern Ireland," Regional Studies, Taylor & Francis Journals, vol. 39(7), pages 923-937.
    5. G. T. Jones, 1993. "The Social Discount Rate For Land‐Use Projects In India: Comment," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(1), pages 160-165, January.
    6. Guadalupe Souto Nieves, 2003. "El descuento social," Hacienda Pública Española / Review of Public Economics, IEF, vol. 165(2), pages 99-126, June.
    7. Akbulut, Hale & Seçilmiş, Erdem, 2019. "Estimation of a social discount rate for Turkey," Socio-Economic Planning Sciences, Elsevier, vol. 67(C), pages 78-85.
    8. K. R. Shanmugam, 2011. "Discount Rate for Health Benefits and the Value of Life in India," Working Papers id:4524, eSocialSciences.
    9. R. A. Sharma & M. J. McGregor, 1993. "The Social Discount Rate For Land‐Use Projects In India: Reply," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(1), pages 166-167, January.

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