Lind - Discounting for Time and Risk in Energy Policy

RESOURCES FOR THE FUTURE LIBRARY COLLECTION ENERGY POLICY

Volume 3

Discounting for Time and Risk in Energy Policy

Full list of titles in the set
ENERGY POLICY

Volume 1: Analyzing Demand Behavior

Volume 2: Limiting Oil Imports

Volume 3: Discounting for Time and Risk in Energy Policy

Volume 4: Economic Aspects of Oil Conservation Regulation

Volume 5: Petroleum Conservation in the United States

Volume 6: The Leasing of Federal Lands for Fossil Fuels Production

Volume 7: Energy, Economic Growth, and the Environment

Volume 8: Energy in Americas Future

Volume 9: Unitization of Oil and Gas Fields in Texas

Discounting for Time and Risk in Energy Policy

Robert C. Lind, Kenneth J. Arrow, Gordon R. Corey, Partha Dasgupta, Amartya K. Sen, Thomas Stauffer, Joseph E. Stiglitz, J.A. Stockfisch, and Robert Wilson

First published in 1982 by Resources for the Future

This edition first published in 2011 by RFF Press, an imprint of Earthscan

First edition Resources for the Future 1982

This edition Earthscan 1982, 2011

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, except as expressly permitted by law, without the prior, written permission of the publisher.

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Earthscan publishes in association with the International Institute for Environment and Development

ISBN: 978-1 -61 726-01 7-9 (Volume 3)

ISBN: 978-1-61726-002-5 (Energy Policy set)

ISBN: 978-1 -61 726-000-1 (Resources for the Future Library Collection)

A catalogue record for this book is available from the British Library

Publisher's note

The publisher has made every effort to ensure the quality of this reprint, but points out that some imperfections in the original copies may be apparent.

At Earthscan we strive to minimize our environmental impacts and carbon footprint through reducing waste, recycling and offsetting our CO2 emissions, including those created through publication of this book.

DISCOUNTING

FOR TIME AND RISK IN ENERGY POLICY

With comments by

Robert Dorfman

Martin S. Feldstein

Tjalling C. Koopmans

Hayne E. Leland

Talbot Page

Mark Sharefkin

Robert Smiley

James L. Sweeney

Daniel Usher

DISCOUNTING

FOR TIME AND RISK IN ENERGY POLICY

Robert C. Lind

Kenneth J. ArrowGordon R. Corey

Partha DasguptaAmartya K. Sen

Thomas StaufferJoseph E. Stiglitz

J. A. StockfischRobert Wilson

Published by Resources for the Future, Inc., Washington, D.C.

Distributed by The Johns Hopkins University Press, Baltimore and London

Copyright 1982 by Resources for the Future, Inc.

All rights reserved

Manufactured in the United States of America

Published by Resources for the Future, Inc., 1755 Massachusetts Avenue, N.W., Washington, D.C. 20036

Distributed by The Johns Hopkins University Press, Baltimore, Maryland 21218

The Johns Hopkins Press, Ltd., London

Library of Congress Cataloging in Publication Data

Main entry under title:

Discounting for time and risk in energy policy.

Includes index.

1. Energy developmentUnited StatesCost effectivenessAddresses, essays, lectures. 2. Energy developmentSocial aspectsUnited StatesAddresses, essays, lectures. 3. Energy policyUnited StatesAddresses, essays, lectures. I. Lind, Robert C. II. Resources for the Future.

HD9502.U52D57 1982 333.790973 81-47619

ISBN 0-8018-2709-4

LEGAL NOTICE

This report was prepared by the organization named below as an account of work sponsored by the Electric Power Research Institute, Inc. (EPRI). Neither EPRI, members of EPRI, the organization named below, nor any person acting on their behalf: (a) makes any warranty, express or implied, with respect to the use of any information, apparatus, method, or process disclosed in this report or that such use may not infringe privately owned rights; or (b) assumes any liabilities with respect to the use of, or for damages resulting from the use of, any information, apparatus, method, or process disclosed in this report.

Resources for the Future, Inc.

RESOURCES FOR THE FUTURE, INC.

1755 Massachusetts Avenue, N.W., Washington, D.C. 20036

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Edward F. Hand, Secretary-Treasurer

Resources for the Future is a nonprofit organization for research and education in the development, conservation, and use of natural resources, including the quality of the environment. It was established in 1952 with the cooperation of the Ford Foundation. Grants for research are accepted from government and private sources only on the condition that RFF shall be solely responsible for the conduct of the research and free to make its results available to the public. Most of the work of Resources for the Future is carried out by its resident staff; part is supported by grants to universities and other nonprofit organizations. Unless otherwise stated, interpretations and conclusions in RFF publications are those of the authors; the organization takes responsibility for the selection of significant subjects for study, the competence of the researchers, and their freedom of inquiry.

This book was edited by F. R. Ruskin and designed by Elsa B. Williams. The index was prepared by Florence Robinson.

Contents

This volume is the result of six years of planning, research, and writing, including a conference held on March 4 and 5, 1977. The conference brought together academics, government officials, and representatives of industry to discuss the rate of discount that should be used to evaluate national energy options and policies. The motivation for this effort was, in large part, a response to (1) the determination by energy modelers that their findings were quite sensitive to the discount rate used and (2) the belief that if economic models were to provide a useful tool for choosing among our energy options, it was imperative that an appropriate rate of discount be specified.