Development, the Environment, and the Social Rate of Discount
Author(s)
Markandya, Anil; Pearce, David W.
Abstract
Many environmentalists have questioned the use of the discount rate in formulating economic policies related to natural resource use. This article examines and evaluates the use of the discount rate in environmental decision making. It argues that rather than trying to “do something” about the discount rate for environmental reasons, the problem might be better addressed by developing the concept of sustainability as a policy instrument.
