Discounting the Benefits and Costs of Environmental Regulations

Bibliographic Data

ID11680811
AuthorsJ Kolb (corresponding author), Jeffrey A Kolb, Joel D Scheraga (Environmental Protection Agency)
Year1990
Volume9
Issue3
Pages381-381
Publication date1990-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Policy Analysis and Management (JOURNAL)
Journal identifiersISSN: 0276-8739 • E-ISSN: 1520-6688
PublisherWiley (PUBLISHER • GB)
DOI10.2307/3325282
OpenAlexW1985225829
LanguageEN
Citations received7

This paper develops a two-stage procedure for discounting the benefits and costs of environmental regulations that is a variant of the shadow price of capital approach. Under this approach, the capital costs imposed by a regulation are annualized using the marginal rate of return on capital and then both benefits and costs are discounted using the social rate of time preference. This approach yields results that differ significantly from those of conventional discounting when benefits occur with a substantial lag or when benefits are long term

Actuarial science · Business · Cost–benefit analysis · Discounting · Economics · Natural resource economics · Political science · Public economics · Climate Change Policy and Economics · Economic and Environmental Valuation · Housing Market and Economics · Law · Finance

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