Equity weighting increases valuations when using real-world data

A-Tier
Journal: Journal of Environmental Economics and Management
Year: 2024
Volume: 128
Issue: C

Authors (2)

Burlile, Austin (not in RePEc) Maniloff, Peter

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Environmental economists have long debated whether and how to appropriately integrate distributional concerns into cost benefit analysis. Recent White House guidance instructs U.S. government analysts to weight different groups’ costs and benefits according to their incomes. Groups with incomes below the median would have weights above one, while groups with incomes above the median would have weights below one. We explore the impact of this method. We find that the average weight is above one in a policy-relevant setting. In this example, weighting increases the magnitude of monetized costs and benefits. The average weight varies with the unit of analysis and the choice of unit of analysis can change the sign of the net benefits.

Technical Details

RePEc Handle
repec:eee:jeeman:v:128:y:2024:i:c:s0095069624001414
Journal Field
Environment
Author Count
2
Added to Database
2026-01-25