Have a personal or library account? Click to login

The Dilemmas of Public Vs. Private Goods Discounting for Long-Term Investment Appraisal: The Puzzle of Citizen and Consumer Approaches to Valuation

Open Access
|Jan 2021

References

  1. Almansa, C., Martínez-Paz, J.M. (2011). What weight should be assigned to future environmental impacts? A probabilistic cost benefit analysis using recent advances on discounting. Science of the Total Environment, 409 (7), 1305–1314. DOI: 10.1016/j.scitotenv.2010.12.004.10.1016/j.scitotenv.2010.12.004
  2. Bateman, I.J., Day, B.H., Georgiou, S., Lake, I. (2006). The aggregation of environmental benefit values: welfare measures, distance decay and total WTP. Ecological Pconomics, 60 (2), 450–460. DOI: 10.1016/j.ecolecon.2006.04.003.10.1016/j.ecolecon.2006.04.003
  3. Baumol, W.J. (1968). On the social rate of discount. The American Economic Review, 58 (4), 788–802.
  4. Berry, M.S., Nickerson, N.P., Odum, A.L. (2017). Delay discounting as an index of sustainable behavior: devaluation of future air quality and implications for public health. International Journal of Environmental Research and Public Health, 14 (9), 997. DOI: 10.3390/ijerph14090997.10.3390/ijerph14090997
  5. Bleichrodt, H., Gao, Y., Rohde, K.I. (2016). A measurement of decreasing impatience for health and money. Journal of Risk and Uncertainty, 52 (3), 213–231. DOI: 10.1007/s11166-016-9240-0.10.1007/s11166-016-9240-0
  6. Boyle, K.J. (2017). Contingent valuation in practice. In: P.A. Champ, K.J. Boyle, T.C. Brown (eds.) A primer on nonmarket valuation (pp. 83–131). Springer: Dordrecht. DOI: 10.1007/978-94-007-7104-8_4.10.1007/978-94-007-7104-8_4
  7. Chapman, G.B. (2001). Time preferences for the very long term. Acta Psychologica, 108 (2), 95–116. DOI: 10.1016/s0001-6918(01)00030-0.10.1016/S0001-6918(01)00030-0
  8. Cropper, M.L., Aydede, S.K., Portney, P.R. (1994). Preferences for life saving programs: how the public discounts time and age. Journal of Risk and Uncertainty, 8 (3), 243–265. DOI: 10.1007/bf01064044.10.1007/BF01064044
  9. Foltyn-Zarychta, M. (2012). Biases in Contingent Valuation Method Used for Investment Project Appraisal. In: P. Cervinek (ed.), European Financial Systems (pp. 45–50). Brno: Masarykova Univerzita.
  10. Foltyn-Zarychta, M. (2018). Ocena inwestycji międzypokoleniowych – kryteria etyczne w ekonomicznej ocenie efektywności projektów inwestycyjnych. Warszawa: C.H. Beck.
  11. Foltyn-Zarychta, M., Zerbe, R.O. (2019). The Economics of CSR: the role of citizen-consumer mix in the social responsible investing. In: M. Castellaneta, F. Vessia (eds.), La Responsabilità Sociale D’Impresa Tra Diritto Societario E Diritto Internazionale. Serie VI, n. 175, Edizioni Scientifiche Italiane (pp. 81–114). Napoli: Università Degli Studi di Bari Aldo Moro, Dipartimento di Giurisprudenza Pubblicazioni.
  12. Frederick, S. (2003). Measuring intergenerational time preference: Are future lives valued less? Journal of Risk and Uncertainty, 26 (1), 39–53. DOI: 10.1023/A:1022298223127.10.1023/A:1022298223127
  13. Hanley, N., Schläpfer, F., Spurgeon, J. (2003). Aggregating the benefits of environmental improvements: distance-decay functions for use and non-use values. Journal of Environmental Management, 68 (3), 297–304. DOI: 10.1016/s0301-4797(03)00084-7.10.1016/S0301-4797(03)00084-7
  14. Hardisty, D.J., Weber, E.U. (2009). Discounting future green: money versus the environment. Journal of Experimental Psychology: General, 138 (3), 329. DOI: 10.1037/a0016433.10.1037/a0016433
  15. Heal, G. (1997). Discounting and climate change. Climatic Change, 37 (2), 335–343.10.1023/A:1005384629724
  16. Howley, P., Hynes, S., O’Donoghue, C. (2010). The citizen versus consumer distinction: an exploration of individuals’ preferences in contingent valuation studies. Ecological Economics, 69 (7), 1524–1531. DOI: 10.1016/j.ecolecon.2010.02.012.10.1016/j.ecolecon.2010.02.012
  17. Johnston, R.J., Besedin, E.Y., Holland, B.M. (2019). Modelling distance decay within valuation meta-analysis. Environmental and Resource Economics, 72 (3), 657–690. DOI: 10.1007/s10640-018-0218-z.10.1007/s10640-018-0218-z
  18. Jørgensen, S.L., Olsen, S.B., Ladenburg, J., Martinsen, L., Svenningsen, S.R., Hasler, B. (2013). Spatially induced disparities in users’ and non-users’ WTP for water quality improvements—Testing the effect of multiple substitutes and distance decay. Ecological Economics, 92, 58–66. DOI: 10.1016/j.ecolecon.2012.07.015.10.1016/j.ecolecon.2012.07.015
  19. Lazo, J.K., McClelland, G.H., Schulze, W.D. (1997). Economic theory and psychology of nonuse values. Land Economics, 358–371. DOI: 10.2307/3147173.10.2307/3147173
  20. Lewinsohn-Zamir, D. (1998). Consumer preferences, citizen preferences, and the provision of public goods. The Yale Law Journal, 108 (2), 377–406. DOI: 10.2307/797478.10.2307/797478
  21. Loewenstein, G., Prelec, D. (1992). Anomalies in intertemporal choice: Evidence and an interpretation. The Quarterly Journal of Economics, 107 (2), 573–597. DOI: 10.2307/2118482.10.2307/2118482
  22. Luckert, M.K., Adamowicz, W.L. (1993). Empirical measures of factors affecting social rates of discount. Environmental and Resource Economics, 3 (1), 1–21. DOI: 10.1007/bf00338317.10.1007/BF00338317
  23. Lumley, S. (1997). The environment and the ethics of discounting: An empirical analysis. Ecological Economics, 20 (1), 71–82. DOI: 10.1016/s0921-8009(96)00073-0.10.1016/S0921-8009(96)00073-0
  24. Meerding, W.J., Bonsel, G.J., Brouwer, W.B., Stuifbergen, M.C., Essink-Bot, M.L. (2010). Social time preferences for health and money elicited with a choice experiment. Value in Health, 13 (4), 368–374. DOI: 10.1111/j.1524-4733.2009.00681.x.10.1111/j.1524-4733.2009.00681.x
  25. Mill, G.A., Van Rensburg, T.M., Hynes, S., Dooley, C. (2007). Preferences for multiple use forest management in Ireland: Citizen and consumer perspectives. Ecological Economics, 60 (3), 642–653. DOI: 10.1016/j.ecolecon.2006.02.005.10.1016/j.ecolecon.2006.02.005
  26. Moser, C., Stauffacher, M., Smieszek, T., Seidl, R., Krütli, P., Scholz, R.W. (2013). Psychological factors in discounting negative impacts of nuclear waste. Journal of Environmental Psychology, 35, 121–131. DOI: /10.1016/j.jenvp.2013.06.003.10.1016/j.jenvp.2013.06.003
  27. Newell, R.G., Pizer, W.A. (2003). Discounting the Distant Future: How Much Do Uncertain Rates Increase Valuations? SSRN Electronic Journal. DOI: 10.2139/ssrn.366281.10.2139/ssrn.366281
  28. Nyborg, K. (2000). Homo economicus and homo politicus: interpretation and aggregation of environmental values. Journal of Economic Behavior & Organization, 42 (3), 305–322. DOI: 10.1016/s0167-2681(00)00091-3.10.1016/S0167-2681(00)00091-3
  29. Orr, S.W. (2007). Values, preferences, and the citizen-consumer distinction in cost-benefit analysis. Politics, Philosophy & Economics, 6 (1), 107–130. DOI: 10.1177/1470594x07068306.10.1177/1470594X07068306
  30. Perman, R., Ma, Y., McGilvray, J., Common, M. (2003). Natural Resource and Environmental Economics, Harlow: Pearson Education Limited.
  31. Perrings, C., Gadgil, M. (2003). Conserving biodiversity: Reconciling local and global public benefits. In: I. Kaul, P. Conceicao, K. Le Goulven, R.U. Mendoza (eds.), Providing Global Pubic Goods. Managing Globalization (pp. 532–555). New York: United Nations Development Programme, Oxford University Press. DOI: 10.1093/0195157400.003.0022.10.1093/0195157400.003.0022
  32. Saez, C.A., Requena, J.C. (2007). Reconciling sustainability and discounting in Cost–Benefit Analysis: A methodological proposal. Ecological Economics, 60 (4), 712–725 DOI: 10.1016/j.ecolecon.2006.05.002.10.1016/j.ecolecon.2006.05.002
  33. Sagoff, M. (1986). Values and preferences. Ethics, 96 (2), 301–316. DOI: 10.1086/292748.10.1086/292748
  34. Sandler, T. (2009). Intergenerational public goods: Transnational considerations. Scottish Journal of Political Economy, 56 (3), 353–370. DOI: 10.1111/j.1467-9485.2009.00488.x.10.1111/j.1467-9485.2009.00488.x
  35. Sen, A.K. (1977). Rational fools: A critique of the behavioral foundations of economic theory. Philosophy & Public Affairs, 317–344.
  36. Sunstein, C.R. (1996). Social norms and social roles. Columbia Law Review, 96 (4), 903–968. DOI: 10.2307/1123430.10.2307/1123430
  37. Sunstein, C.R., Rowell, A. (2007). On discounting regulatory benefits: Risk, money, and intergenerational equity. The University of Chicago Law Review, 171–208. DOI: 10.2139/ssrn.756832.10.2139/ssrn.756832
  38. Tukey, J.W. (1977). Exploratory data analysis. Addison-Wesely.
  39. Weatherly, J.N., Terrell, H.K., Derenne, A. (2010). Delay discounting of different commodities. The Journal of General Psychology: Experimental, Psychological, and Comparative Psychology, 137 (3), 273–286. DOI: 10.1080/00221309.2010.484449.10.1080/00221309.2010.484449
  40. Whitehead, J.C., Blomquist, G.C. (2006). The use of contingent valuation in benefit-cost analysis. In: A. Alberini, J.R. Kahn (eds.) Handbook on contingent valuation (pp. 92–115). Cheltenham, Northampton: Edward Elgar. DOI: 10.4337/9781845427917.00009.10.4337/9781845427917.00009
  41. WWW1 http://stat.gov.pl (20.02.2020).
DOI: https://doi.org/10.2478/foli-2020-0039 | Journal eISSN: 1898-0198 | Journal ISSN: 1730-4237
Language: English
Page range: 114 - 133
Submitted on: Mar 16, 2020
Accepted on: Sep 26, 2020
Published on: Jan 29, 2021
Published by: University of Szczecin
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2021 Monika Foltyn-Zarychta, published by University of Szczecin
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.