On Not Revisiting Official Discount Rates: Institutional Inertia and the Social Cost of Carbon

S-Tier
Journal: American Economic Review
Year: 2014
Volume: 104
Issue: 5
Pages: 547-51

Authors (1)

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

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

Abstract

Within the federal government, official decisions are a product of both substantive judgments and institutional constraints. With respect to discounting, current practice is governed by OMB Circular A-4 and the 2010 and 2013 technical support documents of the Interagency Working Group on the Social Cost of Carbon. Reconsideration of existing judgments must be subjected to a demanding process of internal review (and potentially to external review as well). Institutional constraints, including the need to obtain consensus, can impose obstacles to efforts to rethink existing practices, especially in an area like discounting, which is at once technical and highly controversial. Both decisions costs and error costs must be considered.

Technical Details

RePEc Handle
repec:aea:aecrev:v:104:y:2014:i:5:p:547-51
Journal Field
General
Author Count
1
Added to Database
2026-01-29