Does ‘better’ discounting lead to ‘worse’ outcomes in long-run decisions? The dilemma of hyperbolic discounting
Data(s) |
01/06/2006
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Resumo |
The shortcomings of conventional discounting, especially in the context of long-run environmental problems, have been extensively discussed in the literature. Recently, hyperbolic discounting, i. e. discounting at declining instead of constant discount rates, has attracted a lot of interest among both scientists and politicians. Although there are compelling arguments for employing hyperbolic discounting, there are also pitfalls, which have to be pointed out. In this paper I show that the problem of time-inconsistency, an inherent characteristics of hyperbolic discounting, leads to a potential clash between economic efficiency and intergenerational equity. As an example, I refer to the weak progress in the controlling of greenhouse gas emissions under the Kyoto protocol. As the problem of time-inconsistency cannot be solved on economic grounds alone, there is a need for an intergenerational moral commitment. |
Formato |
application/pdf |
Identificador |
http://boris.unibe.ch/49826/1/boris2.pdf Winkler, Ralph (2006). Does ‘better’ discounting lead to ‘worse’ outcomes in long-run decisions? The dilemma of hyperbolic discounting. Ecological economics, 57(4), pp. 573-582. Elsevier 10.1016/j.ecolecon.2005.05.013 <http://dx.doi.org/10.1016/j.ecolecon.2005.05.013> doi:10.7892/boris.49826 info:doi:10.1016/j.ecolecon.2005.05.013 urn:issn:0921-8009 |
Idioma(s) |
eng |
Publicador |
Elsevier |
Relação |
http://boris.unibe.ch/49826/ |
Direitos |
info:eu-repo/semantics/restrictedAccess |
Fonte |
Winkler, Ralph (2006). Does ‘better’ discounting lead to ‘worse’ outcomes in long-run decisions? The dilemma of hyperbolic discounting. Ecological economics, 57(4), pp. 573-582. Elsevier 10.1016/j.ecolecon.2005.05.013 <http://dx.doi.org/10.1016/j.ecolecon.2005.05.013> |
Palavras-Chave | #330 Economics |
Tipo |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion PeerReviewed |