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Uncertainty in Discount Models and Environmental Accounting

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dc.contributor.author Ludwig, Donald en_US
dc.contributor.author Brock, William A. en_US
dc.contributor.author Carpenter, Stephen en_US
dc.date.accessioned 2009-07-31T15:00:34Z
dc.date.available 2009-07-31T15:00:34Z
dc.date.issued 2005 en_US
dc.date.submitted 2009-06-03 en_US
dc.date.submitted 2009-06-03 en_US
dc.identifier.uri https://hdl.handle.net/10535/3391
dc.description.abstract "Cost-benefit analysis (CBA) is controversial for environmental issues, but is nevertheless employed by many governments and private organizations for making environmental decisions. Controversy centers on the practice of economic discounting in CBA for decisions that have substantial long-term consequences, as do most environmental decisions. Customarily, economic discounting has been calculated at a constant exponential rate, a practice that weights the present heavily in comparison with the future. Recent analyses of economic data show that the assumption of constant exponential discounting should be modified to take into account large uncertainties in long-term discount rates. A proper treatment of this uncertainty requires that we consider returns over a plausible range of assumptions about future discounting rates. When returns are averaged in this way, the schemes with the most severe discounting have a negligible effect on the average after a long period of time has elapsed. This re-examination of economic uncertainty provides support for policies that prevent or mitigate environmental damage. We examine these effects for three examples: a stylized renewable resource, management of a long-lived species(Atlantic Right Whales), and lake eutrophication." en_US
dc.subject uncertainty en_US
dc.subject cost benefit analysis en_US
dc.subject ecological economics en_US
dc.subject ecosystems en_US
dc.subject resource management en_US
dc.title Uncertainty in Discount Models and Environmental Accounting en_US
dc.type Journal Article en_US
dc.type.published published en_US
dc.subject.sector Social Organization en_US
dc.identifier.citationjournal Ecology and Society en_US
dc.identifier.citationvolume 10 en_US
dc.identifier.citationnumber 2 en_US
dc.identifier.citationmonth December en_US

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