On the Problem of Achieving Efficiency and Equity, Intergenerationally
Author(s)
Page, Talbot
Abstract
There is a long tradition in economics of separating analyses of equity and efficiency. In this view, benefit-cost analysis should be used to evaluate alternative policy actions, with discounting being used to compare costs and benefits across time periods. Then equity considerations should be assessed independently. This can be called the separated approach to decision-making. This article proposes an alternative, integrated approach, in which equity and efficiency are interrelated, and the principle of intergenerational equity provides the basis for sustainability.
