Social discounting and the distribution of project benefits |
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| Authors: | C. T. S. Nair |
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| Affiliation: | Department of Forestry and Wood Science , University College of North Wales , Bangor, Gwynedd |
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| Abstract: | The justification of discounting in project appraisal is often given as the diminishing marginal utility of increasing per capita GNP. However, rates of individual income growth vary greatly between project beneficiaries, implying different group discount rates. Use of average rates of income growth can seriously distort calculated present values of projects, particularly those of long duration. |
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