Estimation of the environmental discount rate for Colombia

Francisco Correa Restrepo ()
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Francisco Correa Restrepo: Grupo de Economía Aplicada –GEA–, Programa de economía, Universidad de Medellín

Lecturas de Economía, 2008, issue 69, pages 141-162

Abstract: The main purpose of this article is to describe and apply a methodology to estimate the discount rate on long-term projects, such as those related to environmental conservation and global climate change, for Colombia. The applied methodology is known as gamma discount. For the application of this method, a survey of 120 Colombian economists was conducted. This yielded a much smaller discount rate than the social rate of discount typically used in the economic evaluation of domestic long-term projects. Additionally, the obtained estimations allow verifying the decline in time of such a discount rate

Keywords: discount rate; intertemporal preferences; environmental impacts; cost-benefit analysis; uncertainty. (search for similar items in EconPapers)
JEL-codes: B41 D91 Q51 (search for similar items in EconPapers)
Date: 2008
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Persistent link: http://EconPapers.repec.org/RePEc:lde:journl:y:2008:i:69:p:141-162

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