The Worst-Case Scenario and Discounting the Very Long Term

El Hadji Fall

Post-Print from HAL

Abstract: We propose an ethical viewpoint based on the possibility of the realization of the worst-case scenario in order to reduce future generations risks in terms of discounting. Applied to the question of conservation of a renewable resource, we show that an economy, where the social planner takes into account the possibility that at an uncertain date the discount rate could change to its minimum possible value, could lead to a better conservation of the resource and modify the position of the sacrificed generations. Finally, our model suggests to apply the lowest possible discount rate immediately for long term environmental projects.

Keywords: intergenerational equity; preservation of natural resources; uncertainty; environment; Discounting; Escompte; Environnement; Incertitude; Préservation; Equité intergénérationnelle (search for similar items in EconPapers)
Date: 2006-01
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00084074
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in 2006

Downloads: (external link)
https://shs.hal.science/halshs-00084074/document (application/pdf)

Related works:
Working Paper: The Worst-Case Scenario and Discounting the Very Long Term (2006)
Working Paper: The Worst-Case Scenario and Discounting the Very Long Term (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00084074

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().