This chapter discusses the appropriate role of the SWF framework within governmental institutions. The topic is divided into three parts. First, under what conditions is it legally permissible for governmental officials to employ the framework as a policy-evaluation methodology? The framework provides ethical guidance; what is the legal role of such guidance? Second, to the extent the SWF methodology is used within government, what weight should officials accord to citizen ethical views in specifying the methodology (in choosing a well-being measure, rule for ranking well-being vectors, and uncertainty procedure)? This part of the chapter discusses “empirical social choice.” Third, is it advisable for the framework to be implemented across the full range of governmental programs, or only more narrowly—with respect to tax-and-transfer policy? Some economists argue for the latter position—contending that CBA should be the preferred assessment procedure for non–tax-and-transfer policies.
Individual Time Preferences and Energy Efficiency
