Mock Referenda for Intergenerational Decision-making

Raymond Kopp and Paul R. Portney

No 10745, Discussion Papers from Resources for the Future

Abstract: Traditional applications of benefit-cost analysis make use of what we refer to as the "damage function and discounting" (or DFD) approach. This approach is well-suited to the analysis of projects for which the principal benefits and costs occur within the next thirty to forty years, say. However, for projects with significant intergenerational consequences--i.e., impacts that do not arise for hundreds of years or more--the DFD approach becomes almost intractable. We propose an alternative conception of benefit-cost analysis for intergenerational decision-making--the mock referendum--that is: (i) arguably more consistent with the tenets of modern welfare economics; (ii) more amenable to the analysis of long-term projects or policies; and (iii) consistent with political decision(s) that must be made if climate mitigation (or other long-term environmental protection) measures are to be taken.

Keywords: Labor; and; Human; Capital (search for similar items in EconPapers)
Pages: 20
Date: 1997
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Working Paper: Mock Referenda for Intergenerational Decisionmaking (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:rffdps:10745

DOI: 10.22004/ag.econ.10745

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