Social Discount Rates from Stratospheric Ozone Control

MARK D. AGEE, KENNETH C. FAH

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

We develop a model of optimal project timing to infer the discount rate US residents attach to investments in stratospheric ozone preservation. In this model, the calendar date at which preservation‐related benefits offset costs is shown to be an increasing function of the real social rate of time preference. Estimates of US costs and benefits associated with the original (1987) Montreal Protocol are used to determine a range of discount rates from the US control of stratospheric ozone depletion. From this example the range is about 3.0 to 8.77 per cent.

Original languageEnglish (US)
Pages (from-to)191-196
Number of pages6
JournalEconomic Record
Volume71
Issue number2
DOIs
StatePublished - Jun 1995

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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