Environmental Cost-Benefit Analysis:
|Author:||Mgr. Šárka Štěpaníková|
|Year:||2009 - summer|
|Leaders:|| Mgr. Milan Ščasný PhD.
|Work type:|| EEI & EP
|Awards and prizes:|
|Abstract:||Due to the increasing environmental degradation and high uncertainty of the degree of the natural capital substitutability, a necessity for a decision tool, that would assess a public project/policy, apart from the private, also from the social (so also environmental) point of view, has arisen. We present the environmental cost-benefit analysis (CBA) as an ideal aid to accomplish such an objective in theory, however, as a still imperfect tool to achieve it in practice.
As the CBA is full of controversies, we address only one - the choice of the social discount rate (SDR), in particular the social time discount rate (or “pure” rate of time preference) for the public environmental projects/policies in the Czech Republic – that, due to a great uncertainty about the future and intergenerational justice, is one of the most controversial steps in the CBA. We search for the most appropriate way of the SDR determination, value the social time discount rate and the SDR in general should take in the public environmental projects/policies in the Czech Republic and whether these outcomes are in compliance with the recommendations of the European Commission.