IDEAS home Printed from https://ideas.repec.org/a/oec/packaa/5l4bgfcvkjxt.html
   My bibliography  Save this article

Use of Discount Rates in the Estimation of the Costs of Inaction with Respect to Selected Environmental Concerns

Author

Listed:
  • OECD

Abstract

This paper reviewed current discounting practice in the OECD. It found a wide variance in guidance across countries (which may or may not be justifiable by different economic conditions), and significant differences in guidance within countries. Furthermore, even when discounting guidance is specified, it is not always followed in practice.A clear conclusion from this study is the allocation of public funds would be substantially improved if OECD countries provided departments with a consistent set of guidance on discounting. This guidance should provide for the analysis of long-term projects, programmes and policies, which are increasingly important, particularly with respect to environmental concerns. Finally, guidance should incorporate advances in theory of discounting under long-term uncertainty. A recipe for determining the appropriate rate of decline in the discount rate is included in this paper.

Suggested Citation

  • Oecd, 2007. "Use of Discount Rates in the Estimation of the Costs of Inaction with Respect to Selected Environmental Concerns," OECD Papers, OECD Publishing, vol. 7(9), pages 1-42.
    • Handle: RePEc:oec:packaa:5l4bgfcvkjxt
    DOI: 10.1787/oecd_papers-v7-art28-en
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/oecd_papers-v7-art28-en
    Download Restriction: Full text available to READ online. PDF download available to OECD iLibrary subscribers.
    File URL: https://libkey.io/10.1787/oecd_papers-v7-art28-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tim Keighley & Thomas Longden & Supriya Mathew & Stefan Trück, 2014. "Quantifying Catastrophic and Climate Impacted Hazards Based on Local Expert Opinions," Working Papers 2014.93, Fondazione Eni Enrico Mattei.
    2. Peter Zwaneveld & Gerard Verweij, 2014. "Safe Dike Heights at Minimal Costs: An Integer Programming Approach," CPB Discussion Paper 277.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Zwaneveld, P. & Verweij, G. & van Hoesel, S., 2018. "Safe dike heights at minimal costs: An integer programming approach," European Journal of Operational Research, Elsevier, vol. 270(1), pages 294-301.
    4. Jolanta Bijańska & Krzysztof Wodarski & Aneta Aleksander, 2022. "Analysis of the Financing Options for Pro-Ecological Projects," Energies, MDPI, vol. 15(6), pages 1-30, March.
    5. Ram Fishman, 2019. "Heterogeneous Patience, Bargaining Power and Investment in Future Public Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1101-1107, August.
    6. Peter Zwaneveld & Gerard Verweij, 2014. "Safe Dike Heights at Minimal Costs: An Integer Programming Approach," CPB Discussion Paper 277, CPB Netherlands Bureau for Economic Policy Analysis.
    7. Eva Palinko & Agnes Svoob & Marta Szabo, 2013. "Enhancing the Financial Absorption Capacity of EU Member States Through the Reconsideration of Current Allocation Rules," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 20(3), pages 351-366, November.
    8. Cameron Hepburn & Greer Gosnell, 2014. "Evaluating impacts in the distant future: cost–benefit analysis, discounting and the alternatives," Chapters, in: Giles Atkinson & Simon Dietz & Eric Neumayer & Matthew Agarwala (ed.), Handbook of Sustainable Development, chapter 9, pages 140-159, Edward Elgar Publishing.
    9. Foltyn-Zarychta, Monika, 2010. "An attempt to define the discount rate in the light of the type of investment project," MPRA Paper 40188, University Library of Munich, Germany, revised 2010.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:packaa:5l4bgfcvkjxt. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/oecddfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.