The Use of Distributional Weights in Benefit–Cost Analysis: Insights from Welfare Economics
Marc Fleurbaey and
Review of Environmental Economics and Policy, 2016, vol. 10, issue 2, 286-307
This article examines how distributional weights can be introduced into benefit–cost analysis (BCA) by using insights from recent developments in welfare economics, in particular the theory of fair social allocation and happiness studies. We argue that it is easier than commonly believed to design weights that embody the Paretian and equity properties of a well-crafted social welfare function. However, the informational requirements for such weights suggest that it may be helpful to examine the potential for simpler weights (e.g., based on simple objective indexes of well-being) to provide reasonable approximations of ideal weights for use in BCA.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oup:renvpo:v:10:y:2016:i:2:p:286-307.
Ordering information: This journal article can be ordered from
Access Statistics for this article
Review of Environmental Economics and Policy is currently edited by Robert Stavins
More articles in Review of Environmental Economics and Policy from Association of Environmental and Resource Economists Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().