Theory and Practice in the Choice of Social Discount Rate for Cost-benefit Analysis: A Survey
Zhuang, Juzhong; Liang, Zhihong; Lin, Tun; Guzman, Franklin De | May 2007
Abstract
The choice of an appropriate social discount rate for cost–benefit analysis of public projects has long been a contentious issue and subject to intense debate among economists. This debate has gained new impetus from the recent discussions on the economics of climate change. The purpose of this paper is to survey theories and practices in the choice of the social discount rate. More specifically, the paper examines economic arguments for discounting future benefits and costs and analytical approaches to the choice of the social discount rate, including how a social discount rate can be estimated empirically under each approach; and policy practices followed by countries around the world in the choice of the social discount rate. This paper is intended as a reference material on project economic analysis for ADB staff, consultants, and concerned government officials in developing member countries.
Citation
Zhuang, Juzhong; Liang, Zhihong; Lin, Tun; Guzman, Franklin De. 2007. Theory and Practice in the Choice of Social Discount Rate for Cost-benefit Analysis: A Survey. © Asian Development Bank. http://hdl.handle.net/11540/1853. License: CC BY 3.0 IGO.Keywords
Development In East Asia
Development Planning
Development Research
Technology Development
Aid And Development
Asian Development Bank
Comprehensive Development Framework
Development Cooperation
Development Management
Development Planning
Development Strategies
Development strategy
Development models
Economic development
New technology
Rural planning
Aid coordination
Industrial projects
Infrastructure projects
Natural resources policy
Educational development
Economic development projects
Economic forecasting
Economic development projects
Municipal government
Technology transfer
Exchanges of patents and technical information
Technical education
Technology tCommunication in rural development
Communication in community development
Economic development projects
Development banks
Economic forecasting
Environmental auditing
Cumulative effects assessment
Human rights and globalization
Transfer Technocracy
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