The Public Finance Review Publishes Working Paper By PERC Staff

Jan 20, 2021
Summary: The Journal Public Finance Review recently published the working paper “Discounting Environmental Benefits for Future Generations,” by PERC’s Liqun Liu, Andrew Rettenmaier, and Thomas Saving.
As the debate about the how to best incorporate the well-being of subsequent generations in current public policy discussions continues, the authors discuss coordinating the evaluation of long-term environmental projects with debt reduction given that both benefit future generations. This paper establishes a cost-benefit rule used to assess whether long-term projects are Pareto improving with a focus on how the generational benefits and costs should be discounted.
The working paper can be found in Public Finance Review Vol. 49, Issue 1, 2021 or in PERC’s publication library as Working paper 1802.