IDEAS home Printed from https://ideas.repec.org/p/mst/wpaper/202201.html
   My bibliography  Save this paper

Estimation of SDR in selected countries

Author

Abstract

This paper provides new estimates of the social discount rate (SDR), one of the key parameters used in the cost-benefit analysis framework to assign a present monetary value to costs and benefits occurring at different points in time and spreading over a long-term period. The paper draws upon work carried out in the framework of the ongoing H2020 Future Circular Collider Innovation Study to calculate an ad hoc SDR to be used in the socio-economic impact assessment of the Future Circular Collider (FCC). The countries selected for the purpose of this estimation were those contributing to CERN budget, including both EU27 Member States and non-EU Member States. Beyond providing a new estimate of SDR, this paper also discusses the impacts of COVID-19 pandemic crisis on the SDR by providing two different scenarios (before and after)

Suggested Citation

  • Jessica Catalano & Chiara Pancotti, 2022. "Estimation of SDR in selected countries," Working Papers 202201, CSIL Centre for Industrial Studies.
    • Handle: RePEc:mst:wpaper:202201
    as

    Download full text from publisher

    File URL: https://www.csilmilano.com/docs/WP2022_01.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christian Gollier & Phoebe Koundouri & Theologos Pantelidis, 2008. "Declining discount rates: Economic justifications and implications for long-run policy [‘Regime switches in interest rates’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 23(56), pages 758-795.
    2. Moritz A. Drupp & Mark C. Freeman & Ben Groom & Frikk Nesje, 2018. "Discounting Disentangled," American Economic Journal: Economic Policy, American Economic Association, vol. 10(4), pages 109-134, November.
    3. Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers 163, Cowles Foundation for Research in Economics, Yale University.
    4. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    5. Erhun Kula, 2012. "Discounting: Does it Ensure Intergenerational Equity?," Chapters, in: John Weiss & David Potts (ed.), Current Issues in Project Analysis for Development, chapter 7, Edward Elgar Publishing.
    6. David J. Evans, 2005. "The elasticity of marginal utility of consumption: estimates for 20 OECD countries," Fiscal Studies, Institute for Fiscal Studies, vol. 26(2), pages 197-224, June.
    7. Mark A. Moore & Anthony E. Boardman & Aidan R. Vining, 2020. "Social Discount Rates for Seventeen Latin American Countries: Theory and Parameter Estimation," Public Finance Review, , vol. 48(1), pages 43-71, January.
    8. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
    9. David Cass, 1965. "Optimum Growth in an Aggregative Model of Capital Accumulation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(3), pages 233-240.
    10. Partha Dasgupta, 2008. "Discounting climate change," Journal of Risk and Uncertainty, Springer, vol. 37(2), pages 141-169, December.
    11. Lopez, Humberto, 2008. "The social discount rate : estimates for nine Latin American countries," Policy Research Working Paper Series 4639, The World Bank.
    12. David J. Evans & Haluk Sezer, 2005. "Social discount rates for member countries of the European Union," Journal of Economic Studies, Emerald Group Publishing, vol. 32(1), pages 47-59, January.
    13. Boardman,Anthony E. & Greenberg,David H. & Vining,Aidan R. & Weimer,David L., 2018. "Cost-Benefit Analysis," Cambridge Books, Cambridge University Press, number 9781108415996, January.
      • Boardman,Anthony E. & Greenberg,David H. & Vining,Aidan R. & Weimer,David L., 2018. "Cost-Benefit Analysis," Cambridge Books, Cambridge University Press, number 9781108401296, November.
    14. Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002. "Time Discounting and Time Preference: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 351-401, June.
    15. Massimo Florio & Emanuela Sirtori, 2013. "The social cost of capital: recent estimates for the EU countries," Working Papers 201303, CSIL Centre for Industrial Studies.
    16. Tjalling C. Koopmans, 1963. "Appendix to 'On the Concept of Optimal Economic Growth'," Cowles Foundation Discussion Papers 163A, Cowles Foundation for Research in Economics, Yale University.
    17. Moritz Drupp & Mark Freeman & Ben Groom & Frikk Nesje, 2015. "Discounting disentangled: an expert survey on the determinants of the long-term social discount rate," GRI Working Papers 196a, Grantham Research Institute on Climate Change and the Environment.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Monika Foltyn-Zarychta & Rafał Buła & Krystian Pera, 2021. "Discounting for Energy Transition Policies—Estimation of the Social Discount Rate for Poland," Energies, MDPI, vol. 14(3), pages 1-21, January.
    2. Antonio Nesticò & Gabriella Maselli & Patrizia Ghisellini & Sergio Ulgiati, 2023. "A Dual Probabilistic Discounting Approach to Assess Economic and Environmental Impacts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(1), pages 239-265, May.
    3. Jose Alves, 2019. "The impact of tax structure on investment: an empirical assessment for OECD countries," Public Sector Economics, Institute of Public Finance, vol. 43(3), pages 291-309.
    4. Rafał Buła & Monika Foltyn-Zarychta, 2022. "Declining Discount Rates for Energy Policy Investments in CEE EU Member Countries," Energies, MDPI, vol. 16(1), pages 1-27, December.
    5. Ben Groom & David Maddison Pr., 2019. "New Estimates of the Elasticity of Marginal Utility for the UK," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(4), pages 1155-1182, April.
    6. Matthew Higgins & Daniel Levy & Andrew T. Young, 2003. "Growth and Convergence across the US: Evidence from County-Level Data," Working Papers 2003-03, Bar-Ilan University, Department of Economics.
    7. Alejandro Diaz-Bautista, 2005. "Regional Convergence of Income and Labor Productivity in Mexico," Urban/Regional 0512016, University Library of Munich, Germany.
    8. repec:ebl:ecbull:v:2:y:2002:i:1:p:1-15 is not listed on IDEAS
    9. Francisco de Castro Fernández & José Manuel González Mínguez, 2008. "The composition of public finances and long-term growth: a macroeconomic approach," Occasional Papers 0809, Banco de España.
    10. Buchholz, Wolfgang & Schumacher, Jan, 2010. "Discounting and welfare analysis over time: Choosing the [eta]," European Journal of Political Economy, Elsevier, vol. 26(3), pages 372-385, September.
    11. Iris Claus & David Haugh & Grant Scobie & Jonas Tornquist, 2001. "Saving and growth in an open economy," Treasury Working Paper Series 01/32, New Zealand Treasury.
    12. Edward C. Prescott, 1986. "Theory ahead of business cycle measurement," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 10(Fall), pages 9-22.
    13. Honorata Howaniec & Marcin Lis, 2020. "Euroregions and Local and Regional Development—Local Perceptions of Cross-Border Cooperation and Euroregions Based on the Euroregion Beskydy," Sustainability, MDPI, vol. 12(18), pages 1-21, September.
    14. Lee E. Ohanian, 2008. "Back to the future with Keynes," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Jul, pages 10-16.
    15. Andrew T. Young & Daniel Levy & Matthew J. Higgins, 2004. "Many Types of Human Capital and Many Roles in U.S. Growth: Evidence from County-Level Educational Attainment Data," Working Papers 2004-05, Bar-Ilan University, Department of Economics.
    16. Aykut Kibritçioglu, 2002. "On the Smithian origins of "new" trade and growth theories," Economics Bulletin, AccessEcon, vol. 2(1), pages 1-15.
    17. Monika Foltyn-Zarychta, 2021. "Future-Generation Perception: Equal or Not Equal? Long-Term Individual Discount Rates for Poland," Energies, MDPI, vol. 14(24), pages 1-19, December.
    18. Anjan Mukherji, 2003. "Competitive Equilibria: Convergence, Cycles or Chaos," ISER Discussion Paper 0591, Institute of Social and Economic Research, Osaka University.
    19. Andrew Young & Matthew Higgins & Daniel Levy, 2004. "Heterogeneity in Convergence Rates and Income Determination across U.S. States: Evidence from County-Level Data," Development and Comp Systems 0402003, University Library of Munich, Germany.
    20. Charles R. Hulten, 1996. "Quality Change in Capital Goods and Its Impact on Economic Growth," NBER Working Papers 5569, National Bureau of Economic Research, Inc.
    21. Bennett T. McCallum, 1996. "Neoclassical vs. endogenous growth analysis: an overview," Economic Quarterly, Federal Reserve Bank of Richmond, issue Fall, pages 41-71.

    More about this item

    Keywords

    social discount rate; cost-benefit analysis; discounting;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

    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:mst:wpaper:202201. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Marinella Manghina (email available below). General contact details of provider: https://edirc.repec.org/data/csilmit.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.