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EPG Spotlight – Policy in Focus: Discounting in public policy: Deconstruction of the Social Rate of Time Preference.

In public policy investments, costs are often incurred in the short-term, with benefits accruing in the longer term. Whether a project is worth doing, or government action is justified, depends on the balance of these costs and benefits, in present value terms. This article deconstructs the constituent components of the discount rate used in these calculations, using the economics of climate change as a case study.

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This entry was posted on Wednesday, May 16th, 2012 at 11:46 am and is filed under Publications. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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