Description
Book SynopsisDiscounting is a perennial problem for economists; it is an essential component of assessing economic comparisons over time, but a number of practical and theoretical difficulties continue to confront its use. This is especially so for economists concerned with long time horizons, such as climate change or the management of the environment and natural resources. Discounting is perhaps the area of economics that generates the most disquiet and confusion from outside the discipline.
Economics and the Future tackles the discounting issue from a number of angles, ranging from relatively short-term private financial decisions, to very long-term public issues spanning generations. The authors present differing perspectives and original ideas in a style that remains accessible while addressing some of the more difficult questions about discounting in theory and practice. It reveals that the economic issues regarding time are embedded in a broader social, ethical and philosophical context.
This book explores practical and theoretical concerns in making economic comparisons over time, and presents innovative proposals for resolving some of the problems raised. As such, it will be of great interest to a wide-ranging audience including: academics and students focusing on economics, economic consultants, analysts and policy advisors and environmental organizations.
Trade Review'This excellent book is essential reading for anyone involved with discounting methodology and practice. . . a valuable information source for anyone concerned with discounting procedures.' -- Economic Outlook and Business Review
Table of ContentsContents: Preface 1. Time and Discounting in Economic Decision Making David J. Pannell and Steven G.M. Schilizzi 2. Investigating Net Benefits from Alternative Uses of Resources Bill Malcolm 3. Avoiding Simplistic Assumptions in Discounting Cash Flows for Private Decisions David J. Pannell 4. Compounding and Discounting Under Risk: Net Present Values and Real Option Values Greg Hertzler 5. Risk, Discounting and the Public Sector John Quiggin 6. Reconsidering Reconsidered: Why Sustainable Discounting Need Not be Inconsistent Over Time John C.V. Pezzey 7. Discounting the Distant Future Using Short Time Horizons: Investments with Irreversible Benefits Steven G.M. Schilizzi 8. Discounting Future Prospects, and the Quest for Sustainability Alan Randall 9. How Should We Discount the Future? An Environmental Perspective Michael D. Young and Darla Hatton MacDonald 10. Discounting the Future Cédric Philibert 11. Discounting the Distant Future: Why So Many Voices and So Little Consensus? Steven G.M. Schilizzi 12. Time Will Tell: Pending Questions on Discounting Steven G.M. Schilizzi and David J. Pannell Index
