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Title: Positively gamma discounting: combining the opinions of experts on the social discount rate
Authors: Freeman, Mark
Groom, Ben
Issue Date: 2014
Publisher: John Wiley & Sons (© Royal Economic Society)
Citation: FREEMAN, M. and GROOM, B., 2014. Positively gamma discounting: combining the opinions of experts on the social discount rate. The Economic Journal 125(585), pp.1015-1024.
Abstract: The aggregated term structure of social discount rates that results from Weitzman's (2001) survey of expert opinion is shown to be highly sensitive to the nature of the responses. If variation reflects irreducible differences in ethical judgments, the term structure can decline rapidly. If variation occurred because respondents were forecasting future rates under uncertainty, the term structure is much flatter because additional experts provide new information. The former approach triples the social cost of carbon when compared to the latter. The distinction between heterogeneity and uncertainty illustrates the need for a nuanced treatment of survey data in intergenerational policy making.
Description: This is the peer reviewed version of the following article: FREEMAN, M. and GROOM, B., 2014. Positively gamma discounting: combining the opinions of experts on the social discount rate. The Economic Journal 125(585), pp.1015-1024., which has been published in final form at http://dx.doi.org/10.1111/ecoj.12129. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Version: Accepted for publication
DOI: 10.1111/ecoj.12129
URI: https://dspace.lboro.ac.uk/2134/16717
Publisher Link: http://dx.doi.org/10.1111/ecoj.12129
ISSN: 0013-0133
Appears in Collections:Published Articles (Business School)

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