Determination of Social Discount Rate for Economic Policy-making According to the Sustainability and Intergenerational Justice Criterion

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Hoseiny Seyyed Aqil

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Journal: ECONOMIC STRATEGY Year:2019 | Volume:8 | Issue:28 Page(s): 5-40

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Title

Determination of Social Discount Rate for Economic Policy-making According to the Sustainability and Intergenerational Justice Criterion

Author(s)

Hoseiny Seyyed Aqil | Issue Writer Certificate

Keywords

Social Discount RateQ2

Economic GrowthQ2

SustainabilityQ2

Intergenerational JusticeQ2

Abstract

"Social Discount Rate" (SDR) is one of the most important macro variables for policy making that has a crucial effect on the other macro variables such as growth and Sustainability and ethical variable such as Intergenerational Justice. The main problem of this research is the analysis of the SDR effects on the Sustainability and Intergenerational Justice and then determining the optimum SDR. The realization of the "Sustainability criterion" requires that the Social Discount Rate be zero in order to prevent the decline of the optimal consumption path. Also, according to the ethical approach, "Intergenerational Justice" requires equal treatment with current and future generations, and it is ethically inappropriate to place less importance on future generations and to confiscate and consume the resources they are entitled to now. By adopting this ethical approach in this paper, a "zero percent Social Discount Rate" is prescribed, which will lead to more investment and future welfare.

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APA: Copy

Hoseiny, Seyyed Aqil. (2019). Determination of Social Discount Rate for Economic Policy-making According to the Sustainability and Intergenerational Justice Criterion. ECONOMIC STRATEGY, 8(28 ), 5-40. SID. https://sid.ir/paper/233820/en

Vancouver: Copy

Hoseiny Seyyed Aqil. Determination of Social Discount Rate for Economic Policy-making According to the Sustainability and Intergenerational Justice Criterion. ECONOMIC STRATEGY[Internet]. 2019;8(28 ):5-40. Available from: https://sid.ir/paper/233820/en

IEEE: Copy

Seyyed Aqil Hoseiny, “Determination of Social Discount Rate for Economic Policy-making According to the Sustainability and Intergenerational Justice Criterion,” ECONOMIC STRATEGY, vol. 8, no. 28 , pp. 5–40, 2019, [Online]. Available: https://sid.ir/paper/233820/en

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