Intergerational equity and discount rate in long term environmental impacts

Authors

Abstract

This paper evaluates the concept of intergenerational equity in the environmental evaluation of projects with long term impacts in relation to the determination of the discount rate. The concepts of intergenerational equity in the Economy and the ways found to include this aspect in the definition of the discount rate used in the economic measurement of the environmental costs with long term impacts are analyzed. The proposals presented by Padilla (2002) and the application of the Ramsey Formula with equivalent safety are adopted in the analysis. The analyzes conducted showed that there is a significant difference in the adoption of the discount rate, which is said to be sustainable compared to the market rate in the Brazilian case. Some suggestions in terms of decision making are presented at the end.

Author Biographies

Ilana Dalva Ferreira, Confederação Nacional da Indústria - CNI

Mestre em Gestão Econômica do Meio Ambiente pela Universidade de Brasília, Analista de Políticas e Indústria na Confederação Nacional da Indústria (ilana.eco@gmail.com).

Denise Imbroisi, Universidade de Brasília – UnB

Doutora em Química Analítica pela University of Florida, Professora do Departamente de Economia da Universidade de Brasília – CEEMA/ECO/FACE/UnB

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Published

2017-05-02

How to Cite

FERREIRA, I. D.; IMBROISI, D. Intergerational equity and discount rate in long term environmental impacts. Nova Economia, [S. l.], v. 28, n. 3, 2017. Disponível em: https://revistas.face.ufmg.br/index.php/novaeconomia/article/view/2870. Acesso em: 30 jun. 2024.

Issue

Vol. 28 No. 3 (2018)

Section

Regular Issue

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